Vaccine-related news gave financial services stocks a boost.Due to further blockades and reduced likelihood of unemployment, as well as increased consumer and business confidence in borrowing and purchasing, institutions that bear consumer debt will benefit from the growing consumer confidence.
截至2020年12月7日，Visa [V] 股价上涨11.3%，较3月份市场抛售时创下的52周低点133.93美元上涨了58.8%。2020年11月9日（周一），乔•拜登（Joe Biden）当选美国以及辉瑞(Pfizer) 候选疫苗的消息推动了整个市场的上涨行情，Visa股价创下了217.65美元的盘中历史新高。
In the past period of time, the financial services industry, clean energy, local banks and airlines have continuously climbed the rankings in the ETF Database industry strength rankings.Currently, the financial services industry ranks seventh with an average return rate of 24.1% over the three months.Among the funds that support this ranking, the exchange-traded fund (ETF) iShares US Financials ETF performed the best. As of December 2020, 12, the fund's Visa (2%), Mastercard (6.48%) and Bei Ryder (4.05%) is among the top ten in terms of share.
So, what factors are currently shaping the pattern of the financial services industry?
What is the new consumption model?
As the epidemic has restricted consumer spending for most of 2020, the revenue and net profit of major credit card companies have fallen sharply.
Visa and Mastercard both mentioned similar topics in their recent quarterly reports.Most notably, the reduction in travel/exit restrictions has had a significant impact on the volume of cross-border payments.In the three months to the end of September 2020, Visa's cross-border payments fell by 9% year-on-year, and Mastercard's cross-border payments fell by 47% year-on-year.
However, people have rekindled confidence in domestic consumption. Visa and Mastercard both announced the total payment for the most recent quarter. Compared with the three months ending June 2020, the situation has improved slightly, with Visa achieving a year-on-year growth of about 6%.
Credit card companies recognize that they need to ease the pressure of international consumer activities if they want to promote the continued recovery of total payments and revenue.Although the introduction of a global vaccine can lift exit restrictions and encourage people to travel, thereby ameliorating the downturn in international consumption, it is not easy.
Sachin Mehra, Mastercard’s Chief Financial Officer, said: “Although we believe that cross-border travel will eventually recover, it will take some time to build people’s confidence in travel safety. We believe this is closely related to the widespread availability of vaccines and therapies. The vaccine is expected to be widely vaccinated in the second half of next year."
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