Another Big Bank Plunges

Bloomberg: RBS plummets

Shares in Royal Bank of Scotland Group Plc fell as much as 12 percent in London trading after the bank reported a net loss of £1.98 billion ($2.77 billion), its eighth annual loss. The bank, in which the U.K. government has a majority stake, said that it expected income to decline at its investment bank unit in 2016. Chairman of the bank, Howard Davies, said that his firm is not pursuing highly paid investment bankers anymore as the securities unit shrinks. Shares in RBS were trading 8.2 percent lower at 11:04 a.m. in London.

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The Closing Look

Stocks rallied on Thursday as the market added to Wednesday’s very strong positive reversal. Overnight, the Shanghai composite plunged -6.4% and hit a three-week low. Rumors spread that China’s central bank injected another $52 billion into the money market to help stabilize markets. The ChiNext index which tracks small-cap Chinese stocks tanked -7.7% which clearly is not good for the global risk-on trade. We finally had a strong economic report. Durable goods jumped 4.9%, easily beating estimates for 2%. Excluding transportation equipment, durable goods orders increased by +1.8%.

Gary’s Thoughts: The DOW finished slightly above the 50 day. The S&P finished right on it. Everything else is lagging. Good close. Should lead to more upside but market very very overbought on near term basis here.

Listen To Wednesday’s Investor’s Edge Radio Show: 02/24/2016

On Wednesday’s Show Gary Covers:

  • Market Wrap
  • The Counter Trend Rally/Oversold Bounce
  • The Airline Monopoly – Airlines Raises Prices… Again
  • What Is Wrong With Washington
  • The World Is Awash In Debt

Investor’s Edge: 02/24/2016

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