Following Friday's Brexit-induced tumble of nearly 5.4 percent, the Financial Select Sector SPDR Fund (NYSE: XLF) is down 7.3 percent. Combine Brexit with the Federal Reserve's refusal to raise interest rates this year, and the financial services sector, the second-largest sector weight in the S&P 500, is facing plenty of headwinds.
Banking Stress Test And Headwinds
However, this some good new for financial services stocks and the relevant ETFs overshadowed by current macroeconomic affairs. Results from the first stage of this year's U.S. bank stress tests indicate improved health for major banks, including some that are found in XLF's lineup.
This year's stress test results underscore “improving resilience with solid results despite a severely harsher scenario that included a more severe downturn than previous tests and negative short-term US Treasury rates, Fitch Ratings says. All 33 US bank holding companies passed ...
/www.benzinga.com/trading-ideas/long-ideas/16/06/8152583/financial-services-etfs-could-prove-resilient alt=Financial Services ETFs Could Prove Resilient>Full story available on Benzinga.com
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