Mixed bank results, UK’s snap election, U.S. markets slide
Markets fell again as tensions between the U.S. and North Korea continue along with some volatility in markets domestically. Let’s look a bit deeper…
$1 Goldman Sachs reporting trading numbers far weaker than expected. Bond trading has increased significantly for most retail and investment banks with the rate increases of December and March, however $GS was unable to keep up. Shares were down today. Bank of America fared better, beating expectations and showing stronger trading.
$2 Teresa May, the UK’s prime minister, made a surprise announcement that she is calling for snap elections. Her thinking is she needs to solidify power in Parliament to negotiate effectively with the European Union as Britain exits. Markets and politicos were surprised by the news, which could have effects on markets if Parliament backs effort.
$3 Banks and health care led U.S. markets’ continued slide today. Political risks associated with a faltering agenda of the Trump administration continues to weigh on the markets. Geopolitical issues, like the Syrian civil war and posturing between the U.S. and North Korea are also causing jitters. Earnings releases during this season haven’t helped either.
That’s all for now.