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European banks' earnings in spotlight after big share price gains

Europe's biggest banks report their second-quarter earnings this week, with all eyes on whether the gains from higher interest rates have run out of steam and if recent political drama is weighing on sentiment. The European Central Bank is expected to cut interest rates for a second time in September, but so far banks' earnings have proved surprisingly robust and their shares have continued higher. JP Morgan analysts said European banks' sensitivity to rates remains low along with the proportion of customers shifting cash to higher paying accounts and they expect the amount banks earn from loans minus what they pay on deposits - net interest income (NII) - to remain strong.