US banks dive as strong labor data, hawkish Fed minutes fan rate hike fears

PacWest Bancorp

06/07/2023 16:52

(Updates)
    ** Shares of economy-sensitive major U.S. banks dive in
early hours of trading on Thursday as labor data and hawkish
minutes of Fed's June meeting fanned rate hike fears
    ** Private payrolls increased more than expected in June,
the ADP National Employment report showed, indicating the labor
market remained strong despite growing risks of a recession from
higher interest rates  .N  
    ** JPMorgan Chase & Co  JPM.N , Bank of America  BAC.N ,
Wells Fargo  WFC.N , Morgan Stanley  MS.N , Goldman Sachs  GS.N 
and Citigroup  C.N  fell between ~2% and ~3.6%
    ** Shares of regional banks Citizens Financial  CFG.N ,
Western Alliance Bancorp  WAL.N , PacWest Bancorp  PACW.O ,
Comerica  CMA.N , KeyCorp  KEY.N , PNC Financial Services
 PNC.N , Fifth Third Bancorp  FITB.O  and Zions Bancorp  ZION.O 
fell between ~2.8% and ~8.8%
    ** Investors are fretting over banking sector's overall
health and await second-quarter earnings results, which are due
next week  
    ** S&P 500 Banks index  .SPXBK  fell ~2.6% and KBW Regional
Banking index  .KRX  is down nearly ~3%
    ** YTD, S&P 500 Banks index down about 11%, while KBW
Regional Banking index down about 26%

 (Reporting by Jaiveer Singh Shekhawat in Bengaluru)
 ((JaiveerSingh.Shekhawat@thomsonreuters.com;))