Banks industry

Monitor and predict the growth prospects and potential risks of the Banks industry by examining the financial and macroeconomic factors affecting it and the latest Banks news tracked by MacroVar. Sign Up Free to get notified instantly on the latest Banks updates and get full access to MacroVar advanced analytics of Global Financial Markets, Economies and Financial Risk.

Click to explore the factors and the financial models used by MacroVar to analyze the Banks industry trend, growth prospects and risks.

Banks industry Markets

MarketSymbolLastMomTrendExhRSI1D%1W%1M%1Y%
US Banks industryUS.BANKS541.710.751.5954674.7432-0.71-0.64-2.86-0.09703
Europe Banks industryEU.BANKS328.3810.750.7096662.3606-1.72-3.77-1-0.20035
STOXX Asia & Pacific 600 BanksAPAC.BANKS66.7610.750.6750659.7927-2.67-2.95-2.17-0.14052
Eastern Europe BanksEEU.BANKS63.3710.750.582965.4105-0.98-5.015.62-0.25118
US Banks Senior Credit SpreadsUS.BANKSSENIOR.CR82.76-1-1-0.9166528.62644.138.68-2.31-0.04835
US Banks Subordinated Credit SpreadsUS.BANKSSUB.CR124.83-1-1-1.0253127.54621.854.41-3.49-0.05315
Europe Banks Senior Credit SpreadsEU.BANKSSENIOR.CR83.48-0.5-1-0.8948835.2217-0.57-0.91-3.68-0.06245
Europe Banks Subordinated Credit SpreadsEU.BANKSSUB.CR125.42-1-0.75-0.9564333.2805-0.27-0.66-3.860.00655

Banks industry News

Banks industry Analysis

MacroVar monitors the performance, risk, trend and momentum of the Banks industry by examining the stock and credit performance of major Banks companies across the US, Europe, Eastern Europe and Asia Pacific. Banks Stock performance is monitored by analyzing STOXX equity indices of major Banks companies while Banks credit performance is monitored by analyzing Markit iBoxx credit indices reflecting the performance of the Banks high yield corporate bond market.

MacroVar also monitors fundamental indicators closely linked to the Banks sector published monthly including analysis of sector specific PMI indicators, components of Manufacturing & Services PMI and Economic Sentiment Indicators analysis.

MacroVar also monitors other factors closely related to the Banks industry like closely related financial markets or macroeconmic indicators.

MacroVar estimates the following signals:: Banks momentum, Banks trend, Banks oscillator, Banks RSI and Banks returns.

Banks industry Description

The Banks industry includes institutions providing a broad range of financial services, including retail banking, loans and money transmissions.

Banks industry Momentum

Momentum is used to capture moves in shorter timeframes than trends. Momentum is the relative change occurring in markets. Relative change is different to a trend. A long-term trend can be up but the short-term momentum of a specific market can be 0. If a market moves down and then moves up and then moves back down the net relative change in price is 0. That means momentum is 0. A short-term positive momentum, with a long-term downtrend results in markets with no momentum.

MacroVar Banks momentum signal ranges from -100 to +100. The Banks momentum signal is derived as the mean value from 4 calculations for the Banks . The timeframes monitored are the following: 1 Day (1 trading day), 1 Week (5 trading days), 1 Month (20 trading days), 3 Months (60 trading days)
For each timeframe, the following calculations are performed: 1. Banks return is calculated for the specific timeframe and 2. if the return calculated is higher than 0, signal value output is 1 else signal value is -1. Banks momentum signal is the aggregate of the the 4 values. A technical momentum rollover is identified when Banks momentum signal moves from positive to negative value or vice-versa.

Banks industry trend

Banks trend signal ranges from -100 to +100. Banks trend indicator is the mean value of the 8 calculations described below. The timeframes monitored are the following: 1-month (20 trading days), 3-months (60 trading days), 6-months (125 trading days), 1-year (250 trading days)
For each timeframe, the following calculations are performed: 1. Banks Closing price vs Banks moving average (MA) calculation: If Banks is greater than Banks MA value is +1, else -1, 2. Banks Moving average slope calculation: if current Banks moving average is higher than the previous MA, Banks upward slope +1, else -1
Banks trend model can be used as a trend strength indicator. Banks trend strength values ranging between +75 and +100 or -75 and -100 show strong trend strength.
A technical trend rollover is identified when Banks trend strength indicator moves from positive to negative value or vice-versa.

The most important trend indicator
The Banks 52-week simple moving average and its slope are the most important indicators defining a market’s trend. Banks is in an uptrend when Banks price is higher than the 52-week moving average and the Banks 52-week moving average has an upward slope. If fundamentals of the market have not changed and the moving average slope is still in uptrend, a price drop signifies a market correction and not a change of trend. Traders should watch oscillators like the Banks oscillator and Banks RSI to buy the dip and still follow the trend. The moving average slope turn signifies a change of trend.

Banks industry oscillator

The Banks oscillator estimated by MacroVar is the z-score of the currentBanks price versus Banks 1-year simple moving average price. The formula for the Banks oscillator is:
Banks oscillator = (Current Price – 250 trading days Banks simple moving average price) / (250 days Banks price standard deviation)

Banks oversold conditions
Banks is oversold when it is subject to a persistent downward pressure due to extreme fund outflows. When the Banks is oversold it is often due for a rebound. Values of the Banks oscillator lower than -2.5 signify oversold conditions. It must be noted that the Banks oscillator must be analyzed ibn conjunction with the rest ofBanks quantitative factors. Traders should pay less attention to overbought or oversold conditions during strong trends. They should pay close attention during counter trends and all combined with the Banks RSI.
Banks overbought conditions
Banks is overbought when it is subject to a persistent upward pressure due to extreme fund inflows. When the Banks is overbought it is often due for a correction. Values of the Banks oscillator higher than +2.5 signify overbought conditions. It must be noted that the MacroVar oscillator must be compared to the rest of the Banks quantitative factors. Traders should pay less attention to overbought or oversold conditions during strong trends. They should pay close attention during counter trends and all combined with the RSI.

Banks RSI indicator

The RSI indicator measures the speed and change of price movements. The RSI indicator oscillates between 0 and 100. RSI is a useful indicator during normal trending market conditions when an asset price oscillates around its trend value. During big moves and strong trends however, like short squeezes or price spikes RSI and other oscillators don’t work.
During normal trend market conditions and when Banks is in a downtrend RSI values between 50-60 signify overbought conditions before the downtrend is ready to resume. DuringBanks uptrend, RSI values of 40 to 50 signify oversold conditions before the uptrend is ready to resume. It is strongly not recommended to enter a position when the RSI is “overbought” and falling or vice versa.

Banks industry returns

MacroVar calculates Banks returns for the following timeframes: Daily, Weekly, Monthly, Yearly. The formula for calculating returns is:

Banks returns = (Banks Closing Price – Banks Previous Price)/(Banks Previous Price)
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