ASX to rise; Dow advances on rotation trade
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Australian shares are poised to open higher. On Wall Street, the Dow reset its record high, though the buying pace eased as the session progressed.
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ASX futures were up 48 points or 0.7 per cent to 6782 near 8am AEDT, paring their earlier surge. The local currency slipped 0.5 per cent. The yield on the US 10-year note rose 3 basis points to 1.60 per cent.
“We are getting a healthy reset of richly valued stocks due to rising cost of capital and it can be violent,” Peter Garnry, head of quantitative strategies at Saxo Bank, said in a tweet.
S&P Edges Up, Nasdaq Slips as Bond Yields Rise morningstar.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from morningstar.com Daily Mail and Mail on Sunday newspapers.
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Italy is shaping up to be the busiest market for bank mergers in Europe in 2021 amid a wave of domestic consolidation across the continent that has been accelerated by COVID-19.
Read more about the factors driving banking M&A within Europe:
After 2020 surge, European bank M&A poised to enter bull market
Weak profits, rising costs and the lack of scale to compete in a still-fragmented market have been driving European domestic bank consolidation for some time, particularly in overbanked markets such as Spain and Italy. In 2019, Spain had the second-highest number of bank branches in the eurozone at 49.66 per 100,000 adults, and Italy ranked third with 38.79 branches, compared to the eurozone average of 20.2 branches, according to World Bank data.
Banks boost European stocks as recovery hopes grow metro.us - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from metro.us Daily Mail and Mail on Sunday newspapers.