European Bank Index Falls Back Below Key Level; Focus on Yields
Source: BFW (Bloomberg First Word)
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UUID: 7947283
(Bloomberg) -- Stoxx 600 banking index SX7P falls as much as 1.7%, underperforming broad market and falling back below key Fibo level, as German 2-year yields hit record low before bouncing back.
Alert: HALISTER1- SX7P daily chart here
- Chart shows SX7P crossing below 38.2% Fibo retracement of 2015-2016 slump, remains in bullish channel started in July, lower band of bullish gap left open on Nov. 10 (~154) represents next key support
- A move away from super-low interest rates and the prospect of rising bond yields suggest that investors should focus more on cyclical yield, Citi strategists write; banks, autos, insurance, travel, construction, basic resources have negative correlation to bond returns: Citi
- Earlier: Bunds Slide; Market Looks for Repo Relief After ECB Report
- Nov. 22: Sector Rotation Fueled by Hedge Fund Position: Goldman Sachs
- Nov. 22: European Basic Resources Index Resume Rally Amid Sector Rotation
Source: BFW (Bloomberg First Word)
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UUID: 7947283