Futures traders now see a 22% chance the Fed will cut borrowing costs by year-end, Bloomberg reports.
Related: 10 ETFs Hit the Hardest in ‘Brexit’ Fallout
The financial sector, though, may still look forward to one piece of good news this week as the Federal Reserve is set to release the results of its annual stress test on large U.S. banks. Analysts argue that the results could reassure investors worried about U.S. banks’ exposure to the Brexit.
“This is a real-world test that can help demonstrate the greater resiliency of banks’ balance sheets and the benefits of de-risking that, while having hurt revenue this decade, should help incrementally in times such as this and show the relative strength of U.S. banks,” CLSA bank analyst Mike Mayo, told Reuters.
For more information on the Brexit fallout, visit our Brexit category.
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