Zacks Investment Research | Aug 05, 2016 04:19AM ET
Over the last five trading days, major banks depicted a mixed trend. Though investors’ confidence received a boost as the overall second-quarter earnings performance of the industry has not been as bad as the market expected, concerns related to global macro issues remained an overhang.
Mortgage rates which were on an upswing mostly in July declined this week, hitting 3.43%. In spite of the plunge, investors are apprehensive about parking funds in the housing market, thanks to the volatility in the financial world. However, homeowners seeking lower rates for refinancing are definitely big-time gainers. According to the Mortgage Bankers Association, refinancing activity jumped 55% year over year.
New data reflects that the U.S. economy is growing at a much slower pace than expected. Also, consumers are availing cheap borrowing but business spending has slowed down, impacting economic growth. Further, the low interest rate environment and the troubled energy sector, though improving, remain concerns.
Overall, the focus has shifted from earnings to banks' strategies in boosting profitability through restructuring and acquisitions in the last five trading days.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.