Thursday, 9 June 2016

BAC, DB - no rate hike is bearish

The market is increasingly coming around to the realisation that the US fed won't be raising rates this June 15th, nor probably at the July meeting. The financials are thus seeing particular weakness, with Bank of America (BAC), and Deutsche Bank (DB) settling -1.7% and -2.0% respectively.

BAC, daily

DB, daily


Suffice to add.... low rates are unquestionably bearish for the financials.

DB continues to sound alarms that the policies of the ECB - especially NIRP, are a direct threat to the long term viability of the EU itself.