Strong results from French bank BNP Paribas highlighted why European lenders are becoming popular hedges against the AI trade. Revenues rose 12% year on year and net income jumped by a third, to €4.3bn. While Wall Street rivals like Goldman Sachs grew faster, BNP's results relied on more sustainable trends. Revenue in global markets, including equity and bond trading, surged 18% to €2.8bn, driven by geopolitical uncertainty and AI-driven trading volumes.

For diversification seekers, the rest of the group benefited from local trends unrelated to tech. French retail banking revenues are rising as earlier rate hikes feed through, a tailwind lasting through the decade. In Italy, UniCredit upgraded full-year forecasts after growth across core markets. Both groups benefit from consolidation: UniCredit nearing control of Commerzbank, while BNP's insurance division grew with the €5bn purchase of Axa Investment Managers.

Risks remain. The EU's savings and investment union has underwhelmed before, and shares may face pressure ahead of France's presidential election with Marine Le Pen expected to reach the second round. After a strong rally, European banks trade near book value with less room for error. But when the whole market moves on a single trend, investors may appreciate having something different to worry about.