News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bearish
Oil - US Crude
Bearish
Wall Street
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bullish
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • Traders tend to overcomplicate things when they’re starting out in the forex market. This fact is unfortunate but undeniably true. Simplify your trading strategy with these four indicators here: https://t.co/fYgcMxImlP https://t.co/kkekBVYvhV
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/9S5tXIs3SX https://t.co/VwIkOMpvYl
  • “The UK and EU have agreed to return to the negotiating table to try to agree a post-#Brexit trade deal. But on Friday, a joint statement said ‘significant divergences’ remained.” - BBC News #GBP
  • Multiple time frame analysis follows a top down approach when trading and allows traders to gauge the longer-term trend while spotting ideal entries on a smaller time frame chart. Learn how to incorporate multiple time frame analysis here: https://t.co/Sy3g6HGLrR https://t.co/aRfVCRZut3
  • Forex sentiment analysis can be a useful tool to help traders understand and act on price behavior. Learn how to get the most out of understanding trader sentiment here: https://t.co/rJznrXkcYz https://t.co/uUh18lR3yK
  • The rising wedge is a popular reversal pattern that is predictive in nature and can give traders a clue to the direction and distance of the next price move. Incorporate the rising wedge in your trading strategy and learn more here: https://t.co/zTTk2WOrj9 https://t.co/q5oBalZieU
  • Both the S&P 500 and $EURUSD will enter the coming week with momentum to their back. What can trip up the rallies? What could keep them going? My overview for the week ahead: https://www.dailyfx.com/forex/video/daily_news_report/2020/12/05/SP-500-and-EURUSD-Rallies-Face-Different-Conviction-Questions-.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/YfEXEhkbhl
  • After the recent strength of EUR/USD, a period of consolidation is likely ahead of two critical meetings: of the European Central Bank and the European Council. Get your $EURUSD market update from @MartinSEssex here:https://t.co/Slu7tHo2a4 https://t.co/9am4szeia1
  • Triangle patterns have three main variations and appear frequently in the forex market. These patterns provide traders with greater insight into future price movement and the possible resumption of the current trend. Learn about triangles here: https://t.co/ZukLITx2KG https://t.co/gvkXqKDQyH
  • Continuation patterns can present favorable entry levels to trade in the direction of the prevailing trend. Use continuation patterns in your technical analysis here: https://t.co/TUVnO3bO1P https://t.co/vBLkMKjf4x
US Stocks Rally After Hours as Fed Stress Test Prompts Dividends, Buybacks

US Stocks Rally After Hours as Fed Stress Test Prompts Dividends, Buybacks

2016-06-30 04:56:00
Varun Jaitly, John Kicklighter,
Share:

Talking Points:

  • Fed’s CCAR stress test show 30 of 33 banks passed
  • Deutsche Bank and Banco Santander failed on qualitative grounds
  • A range of buybacks and dividend announcements bolsters US stocks in afterhours trade

Having trouble trading in the FX markets? This may be why.

Despite two banks failing the Federal Reserve’s stress test, the market’s cheered the overall results of the report. This likely has more to do with the subsequent plans to distributed cash to investors and buy back shares by some of the largest institutions to pass the tests.

The Federal Reserve released the results of its yearly Comprehensive Capital Analysis and Review (CCAR) stress test for banks. This test is the result of regulation from the Dodd Frank act requiring systemically important banks maintain specific ratios of quality capital to risk capital. The requirements include a set of qualitative and quantitative measures to better understand how the banks and their assets may perform under adverse market conditions. The ability to maintain quality liquidity as well as lend and perform normal operations during periods of stress is paramount importance to the banking system to avoid a repeat of the 2008 financial crisis. The broad range of requirements has seen many of the asset ratio’s increase since the beginning of these tests.

Of the 33 banks that submitted their results, two failed and one passed conditionally. Deutsche Bank and Banco Santander only failed the stress test’s qualitative measures, focusing mostly on their governance, risk management, internal controls and capital policies. Failure to pass the stress test results in those banks only being allowed to make capital distributions that are approved by the Federal Reserve. Morgan Stanley passed conditionally, however it now must resubmit after making specific changes.

The majority of banks tested passed in both quantitative and qualitative measures. A number of those companies took the opportunity after the clean bill of health to announce corporate actions in increases to dividends and stock buybacks. A few of those institutions and their actions are listed below. Afterhours trading in their respective stocks proved drove higher and extended the general advance in equities through Wednesday’s active session.

JP Morgan Chase

  • $10.6 Billion in stock buybacks
  • Maintained quarterly dividend

Citi Bank

  • $8.6 Billion in stock buybacks
  • Boosted quarterly dividend to 48c/share

Morgan Stanley

  • $3.5 Billion in buybacks
  • Boosts dividends to 20c/share

Bank of America

  • $5 Billion in stock buybacks
  • Boosts quarterly dividend by 50%

Goldman Sachs

  • Undisclosed stock buyback
  • Undisclosed Dividend increase

American Express

  • $3.3 Billion stock buyback
  • Boosted quarterly dividend by 10%

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES