European banks have lagged behind their U.S. counterparts over the past years, but an improving economic landscape, marked by shrinking unemployment, healthy growth and the highest economic confidence in a decade, may help to change that dynamic, said one strategist.

U.S. stocks posted modest gains Wednesday, extending their recent streak of advances that's taken all major benchmarks to record levels. The S&P 500 SPX, +0.12% ended at a record, rising for a seventh consecutive session. The benchmark index rose 3.16 points, or 0.1%, to 2,537.74, with six of its 11 main sectors closing in positive territory. Utilities and real estate shares led the gains, while the financials and technology sectors remained under pressure.

Japanese equities struggled for direction early Thursday despite a weaker yen, even as other markets in the region were broadly higher. The Nikkei Stock Average NIK, -0.07% was nearly unchanged in morning trade at 20,619, with the market facing more resistance as the benchmark index nears its 2015 peak, which was the highest since 1996.