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.

Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Bearish
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
Wall Street
Mixed
Gold
Bullish
GBP/USD
Bullish
USD/JPY
Bullish
More View more
Real Time News
  • A recession is typically accompanied by falling stock prices, but equities are not the be-all and end-all for recession investment strategies. Get your market update from @PeterHanksFX here: https://t.co/H0Rf3AkECs https://t.co/5Il5ptMnMu
  • The $USD may rise versus the Singapore Dollar, Indonesian Rupiah and Malaysian Ringgit if capital flows out of #ASEAN countries as key U.S. data risks a selloff in equities. Get your market update from @ddubrovskyFX here: https://t.co/JWIRn6MLrK https://t.co/y2tXiYs9aV
  • The $USD may be at risk as trader positioning warns that the S&P 500 may bounce as markets look forward to fiscal stimulus. USD/CAD could rise if key support holds down the road.Get your market update from @ddubrovskyFX here:https://t.co/TMq9VZbZ7W https://t.co/H6I3MXjW06
  • As prices dance around on charts, traders are often looking for reasons to explain price movements; however, the underlying source of price movement boils down to the relationship between supply and demand. Learn more about the forces of S&D on forex here: https://t.co/8LfkLXbj2W https://t.co/ZsHdd9NFcO
  • The $USD may be at risk as trader positioning warns that the S&P 500 may bounce as markets look forward to fiscal stimulus. USD/CAD could rise if key support holds down the road.Get your market update from @ddubrovskyFX here:https://t.co/TMq9VZbZ7W https://t.co/TisnGYxllM
  • Here my weekend trading video 'Dow, VIX, Dollar and Gold: Levels and Volatility to Gauge the Markets' https://www.dailyfx.com/forex/video/daily_news_report/2020/03/28/Dow-VIX-Dollar-and-Gold-Levels-and-Volatility-to-Gauge-the-Markets-.html?ref-author=Kicklighter&QPID=917719&CHID=9
  • #Silver and #gold prices have had a fascinating 2020, counterintuitively falling as the #coronavirus’ economic hit has become horribly apparent. A rebound is now afoot. Get your market update from @DavidCottleFX here: https://t.co/nng7lwQ22E https://t.co/JwehIVbBA2
  • Foreign exchange – or “#forex” – markets often pay close attention to politics and central bank policy. We offer a model for traders to gauge their impact on exchange rates. Get your market insight from @ZabelinDimitri and @CVecchioFX here: https://t.co/FbXc1Awu6a https://t.co/mcq5Bq2Jui
  • The $USD soared against the Indonesian Rupiah, with USD/IDR eyeing its best month since the 1997-98 Asia financial crisis amid the #coronavirus outbreak. Can this trend continue? Find out from @ddubrovskyFX here:https://t.co/M3sDZOftrE https://t.co/sbIbp68UOh
  • The $USD may be at risk as technical signals show USD/SGD, USD/MYR and USD/IDR may turn lower. Ahead, the markets will likely weigh US fiscal stimulus bets against dismal data risk. Get your market update from @ddubrovskyFX here:https://t.co/iGqBrY6qyO https://t.co/kJ89YgK3Mm
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

News & Analysis at your fingertips.