John Authers analyses the market's positioning on UK and eurozone banks and financial services companies, as Brexit divorce negotiations start at last. Meanwhile, rising oil prices helped energy companies.
March 29 is in the books here on Wall Street. I apologise about my voice. Here comes the New York Minute. Now it has been a relatively calm day today in world markets, despite the momentous events in the UK and Europe. We now know financial services and banking is going to be a big part of the negotiations of the divorce between the UK and Europe.
As you can see, when you look at the relative performance of financial services companies, European companies have rallied compared to UK ones very dramatically of late. Similarly, if we take a look at banks, very noisy sector there because of all the other factors, but again, you can see a clear sign that people are nervous about the position of UK banks compared to Europe, as we move into the Article 50 process.
Here in the US, the biggest moment of note was that you saw the oil price rise. And so you also saw energy stocks have a great day. Meanwhile, banks continue after actually correcting themselves briefly early this month, banks continue to recover because people are changing their minds once more about rates.