Banking stocks have helped to lead the markets higher on Wednesday, with prospective merger and acquisition activity sparking buying interest in the sector.
The strength in the banking sector is reflected by the 2.9 percent gain currently being shown by the Kbw Bank Index. With the gain, the index is adding to its recent gains and has risen to its best intraday level in sixteen months.
Reports that Barclays (BCS) is considering another major acquisition in the U.S. is contributing to the strength in the sector, with the U.K. bank said to be looking to acquire a U.S. retail bank
The banking index is being helped by shares of Regions Financial (RF), which have jumped by 6.7 percent and broke out to their best intraday price in nearly a year earlier.
In other sector action, shares of Zions Bancorp (ZION) and Huntington Bancshares Inc. (HBAN) have also shown strong upward moves, advancing by 6.3 percent and 5.5 percent, respectively. With the gains, the stocks reached their best intraday prices in ten months in earlier dealing.
Marshall & Ilsley (MI), Citigroup (C) and KeyCorp (KEY) are also posting substantial gains, further contributing to the strong upside visible in the sector.
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