Big US banks expect their net interest income to fall from peak | MarketTalk: What’s up today? | Swissquote

Show notes

The US stock markets ended last week on a cautiously positive note. Friday’s producer price inflation came as a certain relief to inflation worries as the latest data showed an unexpected contraction in the monthly figure. The jump in oil prices, following the US and UK airstrikes in areas in Yemen controlled by the Houthis, which sent the barrel of American crude to past the $75pb level, didn’t last long. The barrel of US crude starts the week below the $73pb level, risks are tilted to the upside as conflict news continues to flow in this Monday.
Rising tensions in the Red Sea and the rising shipping costs are a boon for shipping companies like AP Moeller-Maersk that see their stock prices being pushed higher. Bank stocks on the other hand traded mixed on Friday. Despite a mixed set ofQ4 results and record NII, the big banks share the same forecast for next year: their net interest income will fall next year as the Federal Reserve (Fed) is expected to cut interest rates.
The People’s Bank of China (PBoC) held its policy rate steady this Monday – defying the expectation of a 10bp cut - while pumping more cash into the financial system to reverse the selloff and boost asset prices, and eventually growth. The Chinese CSI 300 index barely reacted to the news. Taiwan’s stock exchange, on the other hand, which diverged positively from the mainland stocks last year, had a cheery start to the week after the ruling DPP’s Lai – who is pointed at as a ‘separatist’ by Beijing - won presidency and his party lost its legislative majority.
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