In the U.S., the Dow lost 254 more points on Thursday,
Dow: 15,660.2, -254.6, (-1.6%)
S&P 500: 1,829.1, -22.8, (-1.2%)
Nasdaq: 4,266.8, -16.8, (-0.4%)
WTI crude oil: $27.20, (-0.5%)
Thursday's moves follow a late-session selloff on Wednesday, when the Dow average logged its longest losing streak since late August and the S&P 500 index matched its longest run of losses since November.
On Thursday the 28th trading day of the year, more than half of those sessions have seen moves of 1% or more on the major indices, well above the average volatility.
All 10 sectors in the S&P 500 finished in the red on Thursday with financials slumping 3.2% as Bank of America Corp.and Citibank Inc. both down sharply.
Banks were also leading the carnage in Europe with Société Générale tumbling 15% following a disappointing fourth-quarter earnings report.
Financials were leading the S&P 500 losses, down 2.6%, as ultralow interest rates and widening credit spreads have recently fueled widespread worries about banks' balance sheets, sparking a selloff in the banking sector. The SPDR Financial Select Sector exchange-traded fund has tumbled 15% year to date.
Every company that went public this year is now trading below their IPO price.
And Now Everyone Is Jumping On The Gold Bandwagon: BofA Says To Stay Long Gold Until $1,375, "$1,550 A Possibility"
Gold prices are breaking above triple resistance forming a technical bottom and channel breakout. This projects gold higher to 1,315 and 1,375 with 1,550 a near term possibility.
Goldman Says: Gold has reached, and so far held, notable resistance around $1200, there's now scope to extend much higher over time.
Lines Around The Block To Buy Gold In London; Banks Placing "Unusually Large Orders For Physical"
This is the best quarterly performance for Gold in 30 years... "It's been crazy – it's been the best week since 2012. We've had people queuing round the block..." I THINK IT IS OBVIOUS THAT PEOPLE ARE STARTING TO GET IT!
There is still a significant amount of time and price appreciation to garner once a bottom has been confirmed. You are not missing out on much by allowing gold to confirm a long-term bottom. So, please remember that investing is a marathon, and not a sprint.
Large U.S. banks JPMorgan Chase (JPM) and Wells Fargo (WFC) that helped bankroll the energy boom are already setting aside billions to cover potential loan losses in the oil industry. Investors are worried about imploding energy loans for European banks like Deutsche Bank (DB).
Remember, when the crunch comes, bank CEOs lie so they can keep their paycheck.
If credit is right - and it usually is on a cyclical basis - US bank stocks have a long way to go until they reach a sustainable bottom. SEE THE CHART BELOW THE TABLE.