News this past week
- Global equities fall, driven by financial stocks
- Oil tumbles Monday to Thursday, rallies Friday
- Gold trading above $1,200/oz
- Dollar lowest since October 2015
- Japanese 10-year yield turns negative
James Klempster, CFA shares his view:
While focus has been on the precipitous fall in energy and commodity related stocks in recent months, outside of the spotlight, bank stocks have also been under a lot of pressure. Despite the gloom, Friday brought with it a solid rally for the banks as a batch of good news proved enough to reduce the pressure on the embattled sector. This came thanks to much better than expected results from Commerzbank, combined with news that JP Morgan’s Jamie Dimon purchased $26m of his own bank’s stock. The most material show of faith, however, came from arguably the most embattled bank, as Deutsche Bank’s co-CEO John Cryan publicly confirmed that the firm was “absolutely rock solid” as the bank embarked on a $5.4bn debt buyback plan.