2023-03-24 14:20:23 ET
Bank stocks rebounded into the green in Friday midafternoon trading, shaking off liquidity fears that had pushed Deutsche Bank ( NYSE: DB ), Germany's largest lender, down as much as 15% in Frankfurt trading on Friday.
The German bank's loss shrank to an 8.5% slide by the end of trading in Germany. European banks remained pressured, but their losses also diminished. Banco Santander ( NYSE: SAN ) ended Madrid trading down 3%, Barclays ( NYSE: BCS ) fell 4.2% in London, HSBC ( NYSE: HSBC ) droppped 2.6% and UBS ( NYSE: UBS ) slid 3.6%.
The KBW Nasdaq Bank Index ( BKX ) rose 0.5% . U.S. regional banks staged a turnaround with the SPDR S&P Regional Banking ETF ( NYSEARCA: KRE ) climbing 2.4% , erasing an 2.3% drop at the beginning of the session in New York.
Among the strongest performers were: KeyCorp ( NYSE: KEY ), +5.0% , Bank OZK ( NASDAQ: OZK ) +4.9% , Citizens Financial Group ( NYSE: CFG ) +4.7%, M&T Bank ( NYSE: MTB ), and New York Communitiy Bancorp ( NYSE: NYCB ), +4.1% , which is acquiring Signature Bank deposits and some of its loans .
By comparison, JPMorgan Chase ( JPM ) slid 1.4%, Bank of America ( BAC ) rose 1.1%, Citigroup ( C ) -1.1% , Wells Fargo ( WFC ) -0.4%, Goldman Sachs ( GS ) -0.9%, and Morgan Stanley ( MS ) -2.4%.
The 10-year Treasury yield ( US10Y ) rose to 3.37% by 2:10 PM ET, after slipping to as low as 3.29%. The U.S. Dollar Index perked up 0.6% .
Earlier today, Bloomberg reported that Treasury Secretary Janet Yellen c alled a previously unscheduled meeting of the Financial Stability Oversight Council. ECB President Christine Lagarde told EU leaders that the euro-area banking sector is strong , and German Chancellor Olaf Scholz said there's no need to worry about Deutsche Bank's ( DB ) future.
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Regional banks lead U.S. banks higher after European banks pare decline