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May 8 (Reuters) - PacWest Bancorp (PACW.O) shares pared early gains on Monday, dragging down other U.S. regional banking stocks, as the Los Angeles-based lender's decision to slash its quarterly dividend failed to stem worries about its financial stability. Other U.S. regional banks also retreated. REUTERS/Mike Blake/File Photo 1 2The KBW Regional Banking index (.KRX) fell 2.82% after gaining nearly 4.7%. But hedge funds, which often engage in short selling, pushed back on Monday, saying in a letter to Gensler that a ban would be counterproductive. Yellen said it is in the SEC's purview to regulate short selling although there is a high bar for any controls if evidence of market manipulation was found.

May 8 (Reuters) - PacWest Bancorp (PACW.O) shares pared early gains on Monday, dragging down other U.S. regional banking stocks, as the Los Angeles-based lender's decision to slash its quarterly dividend failed to stem worries about its financial stability. "The dividend cut is not a good sign," said Jamie Cox, managing partner at Harris Financial Group. Other U.S. regional banks also retreated. The KBW Regional Banking index (.KRX) fell 1.5% after gaining nearly 4.7%. "I have a general fear that smaller banks are going to disappear, and we're going to end up with just a few large banks."

In Europe, the broad pan-regional STOXX 600 index (.STOXX) rose 0.34% on expectations non-U.S. stocks will outperform in the months ahead. Sterling , which has gained 4.4% against the dollar this year, earlier hit a 12-month high of 1.2668 ahead of an expected Bank of England rate increase on Thursday. The dollar rose 0.01% against the yen. "The survey should point to further broad-based tightening in bank lending standards," said Bruce Kasman, head of economic research at JPMorgan. Bullion regained ground after a sharp retreat in the previous session, ahead of the inflation data that could shed light on the outlook for U.S. interest rates.

Summary Oil rallies after three straight weekly declinesGoldman Sachs says demand fears 'overblown'US inflation data and OPEC report in focus this weekSINGAPORE, May 8 (Reuters) - Oil prices rose over 2% on Monday as U.S. recession fears eased and some traders saw crude's three-week slide on demand worries as overdone. Brent crude was up $1.57, or 2.1%, at $76.87 a barrel by 11:19 a.m. EDT (1519 GMT). Brent had finished last week with a decline of about 5.3% while U.S. crude plunged by 7.1% even after Friday's rebound. "The market is less worried about a banking crisis that could lead to a recession and hurt demand," said Phil Flynn, an analyst at Price Futures Group. OPEC's latest monthly oil market report is due on Thursday, providing an updated reading on the demand and supply outlook.

☆ PacWest rallies on dividend cut to bolster capital
▼ + stars: | 2023-05-08 | by ( ) www.reuters.com time to read: +3 min

May 8 (Reuters) - Shares of PacWest Bancorp (PACW.O) jumped 39% in premarket trading on Monday and led a recovery in the battered U.S. banking sector after the lender sharply cut its quarterly dividend to shore up its finances. "Given the extreme volatility in the stock recently ... we believe this dividend reduction makes sense and can help the pace of capital building," RBC Capital Markets analysts wrote in a note. PacWest shares, which soared nearly 82% in their last trading session, were currently trading at $7.96. U.S. federal and state officials are assessing whether "market manipulation" caused the recent volatility in banking shares, Reuters reported on Thursday, citing a source familiar with the matter. Billionaire Warren Buffett, whose views are closely watched by investors, said on Saturday his conglomerate Berkshire Hathaway (BRKa.N) was cautious around the banking sector.

☆ Morning Bid: Markets await US banks' take on credit squeeze
▼ + stars: | 2023-05-08 | by ( ) www.reuters.com time to read: +3 min

A look at the day ahead in European and global markets from Wayne Cole. In the meantime, everyone is waiting for the Federal Reserve's Senior Loan Officer Opinion Survey, or 'SLOOS', to see just how much lending has tightened given the strife in U.S. regional banks. The last survey out in January showed a combined 44.8% of respondents saw a tightening of standards for large and middle-market firms. It would also be consistent with levels reached before or during the last four recessions - 1990-91, 2001, 2007-09 and early 2020. This week also sees Chinese data on inflation and trade, while G7 finance ministers meet in Niigata, Japan, from Thursday through Saturday.

☆ Oil climbs more than 2% as recession fears begin to fade
▼ + stars: | 2023-05-08 | by ( ) www.cnbc.com time to read: +2 min

Oil prices rose over 2% on Monday as U.S. recession fears eased and some traders saw crude's three-week slide on demand worries as overdone. Brent had finished last week with a decline of about 5.3% while U.S. crude plunged by 7.1% even after Friday's rebound. Banking concerns have plagued the market recently after the collapse of three major regional banks. "The market is less worried about a banking crisis that could lead to a recession and hurt demand," said Phil Flynn, an analyst at Price Futures Group. OPEC's latest monthly oil market report is due on Thursday, providing an updated reading on the demand and supply outlook.

☆ Jim Cramer's top 6 things to watch in the stock market Monday
▼ + stars: | 2023-05-08 | by ( Jim Cramer | ) www.cnbc.com time to read: +3 min

As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB.

"Responding to such changes have become a common challenge for countries across the world, including Japan," he said, adding that the topic will be among many issues to be discussed at this week's G7 meeting. "We're watching the situation with a strong sense of alarm, as markets and economies are globally intertwined," he said, adding that Japan's banking system was stable as a whole. Japan would aim to issue a G7 joint communique after the finance leaders' meeting, which may stress the need for authorities to remain vigilant to banking-sector woes, two government sources with direct knowledge of the matter said. The Nikkei newspaper reported on Tuesday the G7 finance leaders will discuss setting up individual emergency plans in case they face digital bank runs. U.S. Treasury Secretary Janet Yellen, who will travel to Japan, will tell her G7 counterparts that the U.S. banking system remains sound, a senior Treasury official said on Friday.

☆ Republic First Bancorp cuts jobs in preparation to exit mortgage business
▼ + stars: | 2023-05-05 | by ( ) www.reuters.com time to read: +1 min

May 5 (Reuters) - Republic First Bancorp (FRBK.O) said on Friday it cut jobs in its commercial lending unit as the lender prepares to exit its mortgage origination business. The Philadelphia-based regional bank said high costs of running a mortgage origination platform were not allowing it to improve its profitability and sharpen focus on core businesses. The layoffs will affect employees of its lending and credit teams in New York, the bank said. Major U.S. lender Wells Fargo & Co (WFC.N) also said in January it would slim down its mortgage business. Deposit balances at Republic First fell 2.7% in the first quarter, but grew between March 31 and April 30, the company reported earlier this week.

☆ Treasury yields climb ahead of key jobs report
▼ + stars: | 2023-05-05 | by ( Sophie Kiderlin | In | ) www.cnbc.com time to read: +1 min

ET, the yield on the 10-year Treasury was up by around three basis points to 3.3823%. The 2-year Treasury was last trading at 3.8022% after rising by over seven basis points, recouping some of Thursday's losses . U.S. Treasury yields rose on Friday as investors awaited key labor market data and assessed the outlook for the economy, and especially the financial sector. Treasury yields had declined on Thursday as concerns about a banking crisis re-emerged, prompting many investors to seek out traditionally safer assets like government bonds. Economists surveyed by Dow Jones are expecting the report to show that 180,000 jobs have been added and the unemployment rate to have risen to 3.6%.

☆ Yen set to snap 3-week losing streak on bank jitters, dollar slips
▼ + stars: | 2023-05-05 | by ( ) www.cnbc.com time to read: +3 min

A bundle of Japanese 10,000 yen banknotes on a tray arranged at a branch of Resona Bank Ltd. in Tokyo, Japan. "The Japanese yen has slowly gained back its appeal of safe haven status, and has definitely been supported by concerns about U.S. regional banks and the associated safe-haven demand," Kong said. A deepening crisis across U.S. regional banks have kept investors on tenterhooks, with pressure growing on U.S. regulators to take more steps to shore up the sector. "For the Fed's June decision, inflation data and employment indicators ... along with bank lending standards will be key to watch. Down Under, the Australian dollar rose 0.26% to $0.6711, while the kiwi NZD=D3 touched a three-week high of $0.6311.

☆ Oil heads for third straight weekly loss as economic worries persist
▼ + stars: | 2023-05-05 | by ( Arathy Somasekhar | ) www.reuters.com time to read: +2 min

May 5 (Reuters) - Oil prices held steady in early trading on Friday, but were set for a third straight week of losses after markets witnessed dramatic drops on fears of a weakening U.S. economy and slowing Chinese demand. For the week, Brent was set to close down 8.7%, while WTI was set to close 10.5% lower. Worries of a U.S. regional banking crisis persisted, worrying markets further, after PacWest Bancorp (PACW.O) said it planned to explore strategic options. Traders are now focused on the release of U.S. employment data for April later in the day, hoping it could help gauge the health of the economy, as well as comments on monetary policy from St. Louis Fed President James Bullard and Minneapolis Fed President Neel Kashkari at the Economic Club of Minnesota. Reporting by Arathy Somasekhar; Editing by Leslie AdlerOur Standards: The Thomson Reuters Trust Principles.

☆ Yen set to snap 3-week losing streak on bank jitters, dollar slides
▼ + stars: | 2023-05-05 | by ( Rae Wee | ) www.reuters.com time to read: +3 min

Although ECB President Christine Lagarde signalled more tightening to come, markets pared back their expectations on how much further rates would rise. Traders have since priced in more aggressive rate cuts from the Fed, with Fed funds futures implying a small chance that cuts could come as soon as June and through to the end of the year. The Aussie and the kiwi were among the largest beneficiaries of the sliding dollar, each rising more than 0.5% and touching multi-week highs. "For the Fed's June decision, inflation data and employment indicators ... along with bank lending standards will be key to watch. The Australian dollar was last up 0.62% at $0.6735, after touching a two-week peak earlier in the session.

☆ US regional lenders eke out gains after brutal sell-off
▼ + stars: | 2023-05-05 | by ( ) www.reuters.com time to read: +2 min

May 5 (Reuters) - Shares of U.S. regional lenders rose in premarket trading on Friday following a brutal sell-off during the week that saw First Republic Bank collapse and peer PacWest Bancorp (PACW.O) explore strategic options. The KBW Regional Banking Index (.KRX) has plunged about 31% this year as the sector grapples with deepening investor concerns with billions in market value wiped in recent weeks. PacWest, whose shares have plummeted 86% this year, said late on Wednesday it was in talks with potential partners and investors as it weighs strategic options. Shares of the bank plunged to close down 33%. Reporting by Manya Saini in Bengaluru; additional reporting by Amruta Khandekar Editing by Vinay DwivediOur Standards: The Thomson Reuters Trust Principles.

☆ Regional bank stocks could be a market afterthought in the week ahead
▼ + stars: | 2023-05-05 | by ( Scott Schnipper | ) www.cnbc.com time to read: +7 min

For the immediate economic and earnings and growth outlook, it almost seems irrelevant whether regional bank stocks rally, steady or sell off more next week. Regional banks were top of mind for investors this past week, as First Republic failed , the SPDR S & P Regional Banking ETF tumbled more than 10% — twice the five-day loss in the S & P 500 Energy Index, the hardest hit S & P sector — and lenders such as PacWest Bancorp and Western Alliance Bancorp lost billions in market value. And, for all that, the S & P 500 only fell about 0.75% this week. Now the conventional wisdom on Wall Street is that regardless of how the regional bank stocks trade, it's a given that bank lending officers are going to pull in their horns and risk management desks will grow more risk averse. But stocks still face a host of issues, none of which are going away next week.

☆ Morning Bid: Apple comforts as payrolls loom
▼ + stars: | 2023-05-05 | by ( ) www.reuters.com time to read: +5 min

Apple upped its dividend and authorized another $90 billion share repurchase program, same as a year ago. Apple's stock has outperformed most of Wall Street in 2023, up 28% year-to-date. After a torrid 2022, that narrow index is up 35% so far this year - far outstripping the Nasdaq 100's (.NDX) 18% gain and accounting for the bulk of the more modest 6% rise in the S&P500 <.S&P500>. And after three hefty daily retreats in a row for the S&P500 this week, futures are up 0.4% ahead of Friday's open. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

The full moon, otherwise known as a strawberry supermoon, is seen over the Skyline of the CBD in Sydney, Australia June 15, 2022. Asia-Pacific markets fell as banking fears were reignited on Wall Street, sending the three major U.S. indexes into a four day losing streak. Regional bank shares sold off, with the SPDR S&P Regional Bank ETF (KRE) dropping more than 5% and some banks seeing volatile trading. Futures for Hong Kong's Hang Seng index stood at 19,904, pointing to a lower open compared to its last close of 19,948.73. China's Caixin services purchasing managers index for April will be published later today, a day after the Caixin manufacturing PMI fell into contraction territory.

☆ Shares rise, dollar weakens on bank sector fears
▼ + stars: | 2023-05-05 | by ( Ankur Banerjee | ) www.reuters.com time to read: +4 min

SINGAPORE, May 5 (Reuters) - Asian stocks rose, the dollar eased and gold hovered around its record highs on Friday, as jittery investors remained nervous about the U.S. banking sector following another rout in shares of regional lenders. Wall Street ended lower on Thursday after Los Angeles-based PacWest Bancorp's (PACW.O) move to explore strategic options deepened fears about the health of U.S. lenders as pressure grows on regulators to take more steps to shore up the country's banking sector. Shares of U.S. regional banks sank this week in the wake of the collapse of First Republic Bank over the weekend that has brought back fears of a financial sector crisis. The Federal Reserve on Wednesday raised interest rates by 25 basis points, but hinted that its marathon hiking cycle may be ending. China shares (.SSEC) rose 0.21%, while Hong Kong's Hang Seng index (.HSI) was up 0.6%, helping lift the region's shares.

☆ CNBC Daily Open: Trading on fear, not fundamentals
▼ + stars: | 2023-05-05 | by ( Yeo Boon Ping | ) www.cnbc.com time to read: +2 min

This report is from today's CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Regional bank stocks continued tumbling Thursday; shares of PacWest and Western Alliance were halted more than once. At one point on Thursday, every stock in the KRE traded lower as investors sold off regional banks. Subscribe here to get this report sent directly to your inbox each morning before markets open.

☆ CNBC Daily Open: Fear, not fundamentals
▼ + stars: | 2023-05-05 | by ( Yeo Boon Ping | ) www.cnbc.com time to read: +2 min

☆ Oil ticks up, but set for third week of losses over demand concerns
▼ + stars: | 2023-05-05 | by ( ) www.cnbc.com time to read: +2 min

Oil prices rose slightly in Asian morning trade on Friday, but were set for a third straight week of losses after markets witnessed dramatic drops on fears of a weakening U.S. economy and slowing Chinese demand. For the week, Brent was set to close down 8.5%, while WTI was set to close 10.3% lower. "It has been a double whammy for oil prices," said Jun Rong Yeap, a market strategist at IG in Singapore. In China, factory activity unexpectedly contracted in April as orders fell and poor domestic demand dragged on the sprawling manufacturing sector. Service activity in China grew through April, though the rate of this expansion has slowed, data showed on Friday.

May 4 (Reuters) - Canadian lender Toronto-Dominion Bank Group (TD.TO) has called off its deal to acquire First Horizon Corp (FHN.N) for $13.4 billion on Thursday, sending the U.S. bank's shares down 44.5% in premarket trading. As part of the termination, TD will pay $200 million to First Horizon in addition to a $25 million fee reimbursement, the banks said. TD first agreed to buy First Horizon in February last year to expand its presence in the United States. Since then, the lender has acquired New York-based boutique investment bank Cowen Inc for $1.3 billion this year. ORTEX data from early last month showed the second-largest Canadian lender was the world's most shorted banking stock.

In theory, that should be welcome news for stocks and other so-called risk assets, which wilted under the barrage of hikes last year. Yet some investors worry this year's 6.5% rebound in the S&P 500 has made equities expensive. Many are also wary that the Fed's rate hikes may precipitate a recession later this year. Stocks fell on Wednesday, with the S&P 500 ending down 0.7%, after the Fed's latest policy decision in which the central bank also raised rates by 25 basis points, as markets expected. Friday's U.S. employment report and next week's consumer price index data may give investors a sense of how deeply the Fed's rate hikes have seeped into the economy.

May 3 (Reuters) - PacWest Bancorp (PACW.O) is exploring strategic options including a sale or capital raising, a source familiar with the matter said, sending the shares of the bank and several other U.S. regional lenders tumbling in after-market trading. The Phoenix-based regional lender said it was "reaffirming its financial strength as well as its deposit growth guidance in response to recent industry events." PacWest stock has lost almost 90% of its value since the regional banking crisis started on March 8. Zion Bancorp (ZION.O), First Horizon (FHN.N) and Comerica (CMA.N) each slumped more than 7% and the SPDR S&P Regional Banking ETF (KRE.P) dropped 5%. The cost of insuring against further losses in regional U.S. bank stocks stood on Wednesday near a one-month high in options markets.

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