U.S. bank stocks are showing one of their swiftest recoveries this year since the depth of the financial crisis, driven by different factors today.
One index tracking U.S. financials at their worst in 2016 which was down almost 25% has bounced to being up 8.8% for a more than 30 percentage point swing.
In relation, that same index tracking U.S. financials saw an approximately 55% swing back in 2009.
It’s been a quick shift of sentiment for an industry that was haunted by a low interest rate environment created by easy monetary policies, to a presidential election that has been a catalyst for an upheaval in inflation expectations in the United States.
This has led to global ETFs that track financial companies in the U.S. to see inflows of cash for seven straight weeks through to last Wednesday, taking in $3.5-billion over that time period.