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HU3 - Huntington Bancshares Inc News Story

€7.7 -0.3  -3.8%

Last Trade - 22/09/20

Sector
Financials
Size
Large Cap
Market Cap £7.27bn
Enterprise Value £15.32bn
Revenue £3.65bn
Position in Universe 118th / 1041

U.S. bank stocks slip on uncertainty after healthcare bill fails

Mon 27th March, 2017 5:35pm
March 27 (Reuters) - Shares in U.S. banks led broader market 
losses on Monday as the failure of the Republican's healthcare 
bill intensified investor doubts whether President Donald Trump 
would be able to deliver on his pro-business policy promises. 
    After rallying more than any other sector after the 
election, banks appeared to be most vulnerable to a pull back 
based on concerns about the Trump agenda. 
    The S&P Financial index  .SPSY , which includes insurance 
companies as well as banks, fell as much as 2.3 percent with 
Morgan Stanley  MS.N  its biggest percentage decliner.  
    The S&P bank subsector index  .SPXBK  fell as much as 2.5 
percent on Monday after falling 5.9 percent in the last 6 
sessions as it became increasingly clear Trump was struggling to 
gain support in his own party for his proposal to repeal 
President Barack Obama's Affordable Care Act. 
    The S&P bank sector rose as much as 34.8 percent after the 
election as investors bet it would benefit hugely from lower 
taxes, lighter regulation and economic growth under Trump.  
    The President promised to focus on tax reform after the 
Republicans pulled their healthcare bill on Friday. While tax 
reform would help banks, investors were not confident Trump 
would succeed in delivering it.   
    "The prevailing view is that it may be difficult to get any 
of the changes done," said Brian Kleinhanzl, an analyst covering 
banks at Keefe, Bruyette & Woods in New York. 
    Even if tax reform happens, the concern is that it might be 
a watered down version of the massive tax cuts Trump promised.   
    "The potential to get tax reform done sooner is positive. 
But there's concern about the potential impact because you might 
have to bring the Democrats along. You might have to make it 
less impactful. You might not get as low a rate as you wanted," 
said KBW's Kleinhanzl.  
    The KBW Regional banking index  .KRX  faced a steeper 
decline than bigger banks on Monday as investors worried about 
prospects for loan growth amid policy uncertainty. After falling 
as much as 3.4 percent the index was last down 1.5 percent.   
    Shares in Morgan Stanley, which was downgraded to a sell 
rating by Compass Point on Monday, fell 3 percent to $41.12. It 
had risen as much as 38.8 percent in the post election rally. 
    The S&P bank index pared losses but was still down 0.7 
percent in late morning trade. Its biggest percentage decliner 
was Huntington Bancshares  HBAN.O ,down 2.1 percent. The broader 
S&P financial sector was last down 0.8 percent. 
    The S&P 500 index was down 0.3 percent on Monday.          
 
 (Reporting By Sinead Carew; Editing by Andrew Hay) 
 ((sinead.carew@thomsonreuters.com; +1)(646)(223 6186; Reuters 
Messaging: sinead.carew.thomsonreuters.com@reuters.net)) 
 
Keywords: USA BANKS/STOCKS
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