EQUITIES: Regional Banks Still At The Fore, With Soft Chinese Imports Weighing

PacWest equities shed ~8% early today. That isn’t as low as the extremes witnessed pre-market, but still threatens to bring an end to the two-day rally in the name that is debatably the most-closely associated with the tumult for the sector at present (at least among those that possess a going concern), albeit after significant YtD losses were incurred. This is weighing on the regional banking sector, with the KBW index down 1.5% on the day, while the KRE ETF is ~2% lower.

• Note that pre-market saw Citizens Financial report that its deposits rose slightly in April, while the name re-affirmed its commitment to its existing medium-term financial targets.
• S&P 500 e-minis showed lower around the cash re-open, presumably aided by the above, before correcting from fresh session lows to last sit ~0.3% softer on the day after much weaker than expected Chinese import data for April and a move lower in the Hang Seng & mainland Chinese equities weighed on sentiment in pre-NY hours.
• Our technical analyst notes that prices have climbed back above the 50-day EMA, which intersects at 4,101.79. A continuation higher would refocus attention on key resistance and the bull trigger at 4,206.25, the May 1 high. A breach of this level would confirm a resumption of the bull trend that started Mar 13. Key support has been defined at 4,062.25, the May 4 low.
• As noted earlier, President Biden’s meeting with Congressional leaders (scheduled for 16:00 NY/21:00 London) will get plenty of attention given the recent roll forward in “x-date” estimations, although there are few signs that much progress will be made today.