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Garnry: Why I think European bank stocks are 'dirt cheap'

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It's been a dreadful year for equities so far, plagued by the Chinese go-slow and the oil slump. European banks, exposed to Asian trading and global growth concerns, have been hard hit. Deutsche Bank, for example, has seen its stock fall around 50% since last July. Credit Suisse has seen its shares fall around 40%, despite the CEO insisting the company is 'rock solid'.

Saxo Bank's Head of Equity Peter Garnry now believes major European banking stocks have hit 'rock bottom' and are ripe for a recovery. More QE from the European Central Bank and an Asian comeback would also instantly boost the outlook for the embattled banks.

Peter also points to the latest European macro data, car sales in January were up 6.3% for example, more evidence, he argues, to back his call to buy European banks.