Financials Bounce Back: Morgan Stanley, JPMorgan, Bank of America All Move Higher
The financials are all trading higher on the current session. The SPDR financial ETF (NYSE: XLF) is up well over 1%. Shares of Morgan Stanley (NYSE: MS) and JPMorgan (NYSE: JPM) are up just under 3%, while Bank of America (NYSE: BAC) Is trading up roughly 2.50%.
The financials may be bouncing on comments coming from Europe, as well as speculation that central banks around the world could be preparing additional stimulus. In addition, financials could simply be seeing an oversold bounce as they have collectively sold off rather in dramatically in recent weeks, including a powerful move to the downside late last week.
Spain's Rajoy made strong statements earlier, calling for the introduction of eurobonds and a banking union. Rajoy also urged European leaders to state that the project of creating the euro was "irreversible."
On Wednesday, the European Central Bank will get the opportunity to change interest rates. Currently, rates remain at 1%. While the general consensus remains that the ECB will keep rates unchanged, a rate cut could offer support to economies in the Eurozone. Economist Nouriel Roubini stated that a rate cut would remain "in the cards."
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