European banking stocks are finally seeing the light at the end of the tunnel. As positive economic data bodes well for monetary tightening and wider margins, political risks from the French election look to be subsiding.

Speaking to Bloomberg, analyst Chris Beauchamp of IG in London describes the “unseemly rush back into European banking stocks,” explaining that economic fundamentals are improving, while the stocks are still cheap compared to US banking stocks, which will be dealing with some level of uncertainty surrounding Trump’s stimulus.

Beauchamp adds that “you can start to see why it’s time for European banks to close some of that performance gap between themselves and the US.”