BAC, Other Banks Surge as Euro Rises

[Stocks-to-Watch]

The Euro rose on Tuesday as the dollar slid, helping give a boost to financial stocks and to commodities like crude oil that are denominated in dollars. Markets were also rising on data out of China showing a dip in imports, leading traders to speculate that the Chinese government will loosen monetary policy. The Shanghai stock index rose 2.7%.

And Alcoa’s forecast for a rebound in the price of aluminum also gave investors hope for a robust economic rebound.

The Dow was recently up about 62 points, or 0.5%.

The optimism helped boost European banks, with Barclays (BCS) recently trading 5% higher. And U.S. banks were likewise rising, led by Bank of America (BAC) and Goldman Sachs (GS), which both say 4% gains in midday trading.



Original Article Source by Barrons.com