We know our banks are under challenge because of the housing hysteria that grabbed headlines last week. However it’s not all local stuff because US banks have been selling off lately as well. The reasoning is simple — they have been on a huge price surge since Donald Trump’s election. Trump's health bill failure, along with the latest news that tax reform could take some time, raises questions over his plans for banking deregulation.
There’s also been a bit of a slowdown in economic growth and last week’s job numbers in the US weren’t great for optimism. I don’t trust one month’s numbers but 98,000 showing up when 180,000 was the tip has to make you think: “Is the US economy losing steam?”
Here’s my answer: the ADP private sector jobs survey reported 263,000 against a forecast of 170,000 and that followed 245,000 jobs in February. I’m not worried about the US economy, yet.