Proactive Investors - The market rebound being enjoyed by Credit Suisse and London’s banking set has not seemed to rub off on US regional banks, which have been hit hardest in the fallout following Silicon Valley Bank.
California’s First Republic Bank appears worst off, with shares down a further 26% in pre-market trades, while Arizona-based Western Alliance Bancorporation is due to open 10% lower.
The iShares U.S. Regional Banks ETF is down 3.1% to US$34.94 from last night’s close.
Regional banks are suffering significant outflows following SVB’s collapse, as customers take flight to supposed “too big to fail” US banks.
JPMorgan Chase & Co is down a less bruising 0.2%, while Bank of America has added 0.35% in pre-market trades.
Bank in the UK, Lloyds (LON:LLOY) Bank, Barclays and HSBC (LON:HSBA) are up in the low single digits, aiding the FTSE 100’s 1.1% daily gains.
John Lewis swings to a loss
John Lewis Partnership has reported a loss of £78mln in its delayed full-year earnings call, compared to a profit of £128m the previous year, primarily due to property write-downs.
Pre-tax losses deepened to £234mln from £27m.
The retailer has opted out of a share bonus as a result, although the financial assistance fund of £800,000, as well as support for childcare, travel and living costs, will remain in place to support staff.
Total partnership sales fell 2% to £12.25bn, with Waitrose sales down 3% to £7.3bn, and John Lewis sales up 0.2% to £4.94bn.
Higher-end retailers appear to be bearing the brunt of reduced customer spending.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, commented: “The cost-of-living crisis has been blowing a chill wind through the retail sector but has whipped up a hurricane of problems for John Lewis.
“Although the high street has shown pockets of resilience among retailers offering value-for-money essentials, the nice-to-have items which are John Lewis’ bread and butter have been dropping out of shopping baskets fast.”
Among the publicly listed retail set, FTSE 250 constituent Marks & Spencer Group plc has recovered 1.1% to 147p, while Primark’s FTSE 100 parent company Associated
British Foods plc is up over 2%.
FTSE 100 has retreated from intraday highs of 7,435 to 7,396 as of 11.25am.