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Last Trade - 14/05/21

Sector
Financials
Size
Large Cap
Market Cap £60.09bn
Enterprise Value £77.19bn
Revenue £11.91bn
Position in Universe 148th / 6846

U.S. bank stocks drop broadly after default by stock fund manager

Mon 29th March, 2021 8:09pm
By David Henry
    March 29 (Reuters) - U.S. bank stocks fell broadly on Monday
on news of losses at some global investment banks after a fund's
default, even knocking down shares of domestic lenders generally
removed from equity markets.
    The KBW Nasdaq Bank stock index  .BKX  fell as much as 3.4%
before paring losses to 2% at mid-afternoon. Shares of big U.S.
banks and even regional banks, such as Truist Financial  TFC.N 
and PNC Financial Services Group  PNC.N , dropped after Nomura
Holdings Inc  8604.T  and Credit Suisse Group AG  CSGN.S  warned
of billions of dollars in potential losses after a fund, named
by sources as Archegos, defaulted on margin calls.  urn:newsml:reuters.com:*:nL1N2LR003
    "This is an ideal excuse for any investor to take profits in
financials, said Christopher Marinac, director of research at
Janney Montgomery Scott. "Banks stocks have done very well this
quarter."
    "The real question is whether this becomes a bigger systemic
incident that lingers for several weeks," he said.
    The KBW index had gained 24% this year through Friday.
    Bank stocks have gained largely on rising bond yields, which
could boost net interest income. The rollout of vaccinations and
government stimulus programs have also fueled optimism for loan
growth and lower-than-expected losses on bad loans.
    On many days this year bank stocks have gone up or down with
the 10-year U.S. Treasury note yield  US10YT=RR , said Marinac.
    Late Monday morning bank stocks began to rise from their
initial lows after the 10-year yield rose to 1.70% from Friday's
1.66%.

 (Reporting by David Henry in New York; Editing by Richard
Chang)
 ((David.Henry@thomsonreuters.com; +1-332-219-1974; Reuters
Messaging: david.henry.thomsonreuters.com@reuters.net))
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