I Tawt I Taw Another Puddy Tat

A danger weighing on the broader market earlier in the year appears to have arisen once again. European bank stocks were under heavy fire at the start of 2016 due to new bank bail-in rules, perceived commodities related exposure and a chronically weak profitability outlook. But once global markets bottomed in mid-February, these European banks found their footing and began moving modestly higher. But over the past two to three weeks, they have disconnected with the major averages and rolled back over. Many are now pushing back toward fresh new lows as they struggle under the weight of negative interest rates and the need for further restructuring and cost cutting. This latest does not bode well for a broader stock market seeking to hold on to its recently strong bounce.

Please click on the link to read more of my article on Seeking Alpha.

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