Why is the Macquarie share price getting hammered today?

A man renovating his home wields a sledge hammer and with an almighty swing demolishes a wall.A man renovating his home wields a sledge hammer and with an almighty swing demolishes a wall.

The Macquarie share price is suffering today amid a fall in global bank shares.

The Macquarie Group Ltd (ASX: MQG) share price is currently trading at $200.66, a 1.72% fall. For perspective, the S&P/ASX 200 Financials Index (ASX: XFJ) is down 1.19%.

Let’s take a look at what could be impacting this banking giant today.

Global bank shares slide

The Macquarie share price is falling amid a global downturn in bank shares in United States and European markets overnight.

Wells Fargo & Co (NYSE: WFC) slid 2.75%, Bank of America Corp (NYSE: BAC) dropped 2.25% and JPMorgan Chase & Co (NYSE: JPM) fell 2.94% in the United States. Bank stocks suffered amid US Treasury yields declining, CBS reported. Global economy fears including the COVID-19 situation in China and Ukraine war are also dampening risk appetite.

European banks suffered as well, with the major bank index STOXX Europe 600 Index (SX7P: STX) dropping 2.25%. This was despite strong earnings from Swiss Bank, Reuters reported.

Macquarie appears to be feeling this pinch slightly more than other ASX banking shares today. The National Australia Bank Ltd (ASX: NAB) share price is down 1.24% while Commonwealth Bank of Australia (ASX: CBA) is falling 1.23%. Meanwhile, the Australian and New Zealand Banking Group Ltd (ASX: ANZ) is sliding 1.74%, and Westpac Banking Corp (ASX: WBC) is down 1.46%.

However, looking ahead, brokers are predicting the Macquarie share price has upside in the future. JP Morgan has a $227 price target on the company’s share price, while Jefferies and Morgan Stanley recently valued the company at $245.

Macquarie share price snapshot

The Macquarie share price has surged 26% in the past year, but it is down 2.3% year to date.

For comparison, the ASX 200 Financials Index has climbed 7% in a year.

Macquarie has a market capitalisation of nearly $77 billion.

The post Why is the Macquarie share price getting hammered today? appeared first on The Motley Fool Australia.

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Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Bank of America is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group Limited and Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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