Stocks down, as Bank shares fall

 

Shares of banks slid Monday, dragging down major indexes world-wide.

After stocks rallied following central-bank meetings last week, major U.S. indexes notched two consecutive sessions of losses. Investors sold bank shares in the U.S., Europe and Japan amid concerns about the capital position of Deutsche Bank ahead of anticipated legal settlement with the U.S. Justice Department.

Deutsche Bank AG

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Investors sold bank shares in the U.S., Europe and Japan amid concerns about the capital position of Deutsche Bank ahead of anticipated legal settlement with the U.S. Justice Department. Deutsche Bank shares slid 7.5% in Europe to their lowest price in at least 20 years. A spokesman for the German lender told CNBC that Deutsche Bank remains strong and market speculation was fueling uncertainty. It’s going to be tough to have a rally in the market when you hear that Deutsche Bank could be having capital issues and the stock’s at all-time lows. 

Price share is deeply below the moving average’s 

SMA50 – (-14.96%)  

SMA200 – (-30.74%) 

Last change – (-7.06%) 

Distance from 52-week high is more than 60% lost of value 


 

Morgan Stanley 

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Morgan Stanley shares fell 2.8% because of Fed decision that some of the biggest banks should impediment to issuing more dividends and buying back shares with requirements under the new testing regime. The biggest banks, with highest capital requirements will face the biggest impact from the change. Meanwhile, stress-testing and record-keeping will become somewhat less burdensome for banks with less than 25billion in assets. Morgan Stanley still considered as a buy, trading above it’s 52 moving average. 

Last change: (-2.76%)

Price –  $31.03

SMA50 :  (2.53%)

SMA200 : (13.81%) 


 

Goldman Sachs Inc.

 

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Shares of Goldman Sachs sank 2.2% on the stock market, piercing it’s 50-day moving average after back-to-back days of negative regulatory news on Friday. Again how i said in the previous couple of statements for this particular banks, Fed propose rule that they would hold more capital in the energy markets, Commodities and metals. This particular news downgrade the shares of the banks I’ve mentioned above in the article with approximately 2% and more. 

Last change: (-2.21%)

SMA200: (1.94%)

SMA50: (-1.67%)  

Price:  $161.48


 

U.S.-listed shares of Deutsche Bank were down 7.1% to 11.85, hitting a record-low 11.23 intraday following reports that it sought help from Berlin in its Justice Department fight. The bank denied the reports and said it doesn’t plan to increase its capital. Large banks will lose additional political capital in the wake of the Wells Fargo headlines and will find it tougher to find allies in Congress to defend the banks.

 

 

J.Mason ♦

 

 

 

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