The S&P 500 Banks Index slumped 4.4 percent, the most among 24 industries, after the Moody’s report. U.S. commercial property prices are now down almost 23 percent from the October 2007 peak and transactions have dropped as much as 80 percent, according to Moody’s/REAL Indices issued today. Prices fell 1.7 percent in March from February.
“Moody’s expects continued weakness and possibly further declines in volume in the coming months,” the ratings company said in a statement.
Watch the bank index (click on chart to enlarge). It stands at a major resistance level. This index is important because it may lead the market.
Note how it has gone nowhere since mid-April.
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Editor, since 1977
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