Beat-up Canadian bank stocks at mercy of murky economy: Analyst - BNN Bloomberg

In a report to clients Thursday, Darko Mihelic from RBC Capital Markets said the country's big lenders will likely need to shore up their credit reserves in the upcoming reporting season, and reckoned there's no imminent sign of a trigger to pull their stocks out of the current malaise.

Bank stocks have been pummelled as central banks move more aggressively to tame inflation. While commercial banks benefit from higher rates as they lift interest income, an aggressive tightening cycle can also prompt concern about a recession and loan defaults by clients. Mihelic noted that the big U.S. banks that recently reported second-quarter results built US$1.1 billion in reserves during the period, fully reversing the amount they released from reserves in the first quarter.

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Stocks steady with futures before ECB rate liftoff - BNN BloombergEuropean stocks steadied with U.S. equity futures Thursday as investors braced for the European Central Bank’s first interest rate hike in 11 years
Source: BNNBloomberg - 🏆 83. / 50 Read more »

U.S. stocks rise with bonds on hope rout has bottomed - BNN BloombergStocks climbed with US equity futures Wednesday amid speculation that the worst of this year’s equity rout may be over.
Source: BNNBloomberg - 🏆 83. / 50 Read more »