US regional lenders surge as Wall Street, yields gain after Trump wins back White House
06/11/2024 11:58
(Updates)
** U.S. regional lenders jump in premarket trading, tracking
gains on Wall Street .N and Treasury yields US/ after
Republican Donald Trump was elected president
** Citizens Financial CFG.N up 11.6% premarket, while
Valley National VLY.O and Zions Bancorp ZION.O gain 9.2% and
8.4%, respectively
** Regions Financial RF.N , M&T Bancorp MTB.N , U.S.
Bancorp USB.N and KeyCorp KEY.N up between 9% and 10% before
the bell
** Trump was elected president on Wednesday, capping a
remarkable comeback four years after he was voted out of the
White House and ushering in a new American leadership
** SPDR S&P Regional Banking ETF KRE.P leaps 9% premarket
** Banc of California BANC.N , First Horizon FHN.N ,
Western Alliance WAL.N and Comerica CMA.N up between 9.4%
and 11% before the bell
** U.S. Treasuries fell sharply on Wednesday, sending yields
surging, as Trump's election victory stoked bets on economic
policy shifts that could boost deficits and inflation
** Yields serve as benchmarks for the interest rates banks
charge on loans, with lending profitability improving when they
move higher
** Banks will also likely see a boost in investment banking
fees earned off advising on deals with Trump's return to power
due to looser anti-trust regulations, analysts have said
** Meanwhile, major U.S. banks also surge premarket, while
S&P 500 futures touched a record high in sharp and broad-based
rally on Wednesday .N
** KBW Regional Banking index .KRX - a gauge of investor
sentiment towards the sector - was up ~7.2% YTD, as of last
close, underperforming broader markets
(Reporting by Manya Saini in Bengaluru)
((Manya.Saini@thomsonreuters.com))