Why Bank of America and Citigroup Are Trading Higher Today
Shares of Bank of America (NYSE: BAC) and Citigroup (NYSE: C) were trading nearly 4% higher in the final hour of trading Thursday as the broader market rallied from what has been a difficult few weeks.
Like a lot of the market, bank stocks got hit hard on the news about China Evergrande Group (OTC: EGRN.F), and on fears over what the property developer's situation could mean for the Chinese real estate market, which has gotten quite frothy.
The news sent longer-term Treasury yields lower, and bank profits are closely tied to those yields. For that reason, bank stocks have struggled in recent days. However, a recent Bloomberg article revealed that the major U.S. banks do not have any direct lending exposure to Evergrande.
Source Fool.com
