European bank stocks have been leading the market rally, but upcoming challenges may put their momentum at risk. The sector has seen significant gains in recent months, driven by improving economic conditions and accommodative monetary policies. However, regulatory scrutiny, growing concerns over climate change, and potential interest rate hikes could test the banks' resilience.

Source: https://www.bloomberg.com/news/articles/2024-10-22/banks-market-leading-stock-rally-in-europe-about-to-get-tested