J.P.Morgan Recommend Selling EDZ0 On The Bank Equity Dynamic

J.P.Morgan recommend selling EDZ0 at 99.760. They note that "stronger equity market performance has been particularly favorable for bank stocks, with the financials index easily outperforming the broader market. Upside on equities implies more pressure to U.S. bank GSIB scores across most of the complex, with buyback restrictions removing a key release valve into year-end. These dynamics, combined with further Fed balance sheet expansion and modest TGA declines, should continue to ratchet up GSIB scores. Even amidst some stated willingness to tolerate temporarily higher scores, increases of this magnitude are likely to elicit some response and current pricing is skewed entirely towards softer conditions over the turn in FX swaps and unsecured funding spreads."