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Why Citigroup Is Plummeting Today

Jessica Alling
May 23, 2013

After big gains in the past few days, Citigroup (NYSE: C) is entering negative territory for the first time in a while. After gaining 6% last week and nearly reaching another 3% earlier this week, the stock has dropped 2.1% within the first hour of trading. Despite some good news for the bank, international news may continue to move shares lower.

A look around
The banking sector as a whole is not in the best shape this morning, following the overall market in a slump:

  • The KBW Bank Index (INDEX: ^BKX) is down 0.87%.
  • Bank of America (NYSE: BAC) is also sliding, with a loss of 1.01%.
  • JPMorgan Chase (NYSE: JPM) is down 0.76% in trading this morning.
  • Wells Fargo is the beacon of light this morning, with only a 0.04% drop.

International news
Japanese markets fell sharply following increased bond yields. The Nikkei 225 fell 7.3% in trading, with help from weak manufacturing data from China. With Citigroup, Bank of America, and JPMorgan all heavily invested in international markets, it makes sense that the falling markets overseas would drive shares down this morning. The three banks are also in the top five that control the U.S. market for swaps, which may also be affected by this morning's nosedive.

Citigroup is the most international bank of the three, and was recently named the top foreign exchange bank in Lat