Financials (XLF) Move Higher as Investors Drink Draghi's Punch
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Financial Select Sector SPDR (NYSE: XLF) moved higher today, tacking on a gain of 1.5 percent heading into the close on Thursday. Large banks such as JPMorgan (NYSE: JPM), Citigroup (NYSE: C), and Goldman Sachs (NYSE: G) all moved higher.
The move was fueled by comments from ECB President Mario Draghi, who says he will do what it takes to help support the euro. Earlier reports this week point to action by the Fed. Taken together, central back action could backstop losses, and investors are interpreting this as a bullish sign for banks stocks with exposure to a deteriorating world economy.
Year-to-date, banks stock have outperformed the broader market, and based on today’s price action that trend may continue into the second half of the year, especially if central bankers make good on their promises.
The move was fueled by comments from ECB President Mario Draghi, who says he will do what it takes to help support the euro. Earlier reports this week point to action by the Fed. Taken together, central back action could backstop losses, and investors are interpreting this as a bullish sign for banks stocks with exposure to a deteriorating world economy.
Year-to-date, banks stock have outperformed the broader market, and based on today’s price action that trend may continue into the second half of the year, especially if central bankers make good on their promises.
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