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US Banks Seen Gapping Lower on Moody's Downgrade

EQUITIES
  • US stock futures reaching lower again headed through to the NY crossover, with the e-mini S&P in very close proximity to the Monday lows of 4504.75. Weakness through here opens 4493.75 for direction.
  • US bank names are expected to suffer from the open, with the larger names including Bank of America, Citigroup, JPMorgan and Morgan Stanley among others seen opening lower by 1.0-1.5% on the late Moody's sector downgrade yesterday, who cited higher funding costs and exposure to office space as justification for the ratings cut.
  • Earnings also adding downward pressure, with UPS down 5.3% pre-market after cutting both profit margin and revenue forecasts.

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