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Stocks Testing Friday High Thanks to Early Bank Outperformance

EQUITIES
  • Equity futures remain firm, but are stopping short of any break above the Friday high at 4009.25.
  • Pre-market trade among US GSIBs continues to dictate price action across the headline index, with strength in JPM (+1.9%), BofA (+2.4%), Citigroup (+2.5%) and Wells Fargo (+3.1%) ahead of the bell.
  • Market moves follow the reports overnight that US officials are said to be looking at ways in which to provide a temporary guarantee on all bank deposits - a move that could quell concerns among US regional banks and head off any escalation of the SVB crisis.
  • The piece writes that the strategy is being developed as a backstop should the crisis worsen, rather than a proactive tool to be rolled out immediately.

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