Banks

Daily update on share prices and consensus price targets.

Wall Street continued its post-jobs slide last night, sending the S&P through technical support. Dow down 61.

Morgan Stanley is forecasting a 10% drop in UK house prices and subsequent impact on UK bank earnings, leaving National Bank exposed.

Commonwealth Bank analysts fear ECB resistance to Greek restructuring will mean more euro weakness ahead of any resolution. Australian stocks are indirectly exposed.

Thorn Group posted a full year profit at the top end of guidance and with further growth from a broader base expected in coming years brokers continue to see value.

Bank revenue growth remains sluggish, analysts noted, and profit results were not of great quality. NAB has moved to top pick.

Consensus suggests FY11 was a year of gradual improvement for Macquarie Group, but there is still a long road ahead.

A strong euro, soaring commodity prices and solid US earnings results. Bring on the risk trade. Gold at 1500. The Aussie at 1.07. Dow up 186.

Bank of Queensland is confident of a swift rebound post-disasters but brokers remain somewhat concerned.

PFP’s Tim Price suggests governments and the role of agency risk were as responsible for the global financial crisis as the banking sector itself.