Aug 31. Financial stocks weak
Surprising rally in fixed income on light volume Monday. Friday’s sell off was completely erased. Stocks again started the day on a promising note, only to slowly grind lower through the session. Financial stocks again weak; new low closes in BAC, USB, WFC.
–There were a couple of stories about China, one that Moody’s warned about increased leverage in the banking system, and the second, which seems far-fetched, that PBoC head Zhou had gone missing due to possible punishment over losses on US Agency investments. In any event, a harsher spotlight on problems in China is treasury positive??
