Banks Garner Attention as Global Equities Gain

Stocks in Asia and Europe gained broadly on Tuesday, as weary investors jumped back into assets like industrials and miners but remained cautious of bank stocks. Japan's Nikkei index closed higher by 1.22%, with Hong Kong's Hang Seng index closing higher by 1.99%. Stocks were boosted by HSBC's China flash purchasing managers' index, which indicated the country wasn't dropping off dramatically. Equities in Europe followed Asia's lead, with London's FTSE index up more than 1% and Germany's DAX index up more than 1.6% in mid-day trade. Global banks remained at the forefront of investor minds, however, as several banks made headlines early this week. Word spread Monday that Goldman Sachs GS CEO Lloyd Blankfein had retained high-profile criminal defense lawyer Reid Weingarten. Shares of Goldman Sachs dropped immediately on the news, closing down 4.7% before falling more in after-hours trade. Swiss bank UBS UBS announced Tuesday that it was laying off 3,500 people in an expense-trimming initiative. More than 1,500 of the announced layoffs are to come from the under-performing investment bank. Especially with ongoing sovereign debt issues in Europe and the downgrade of U.S. debt by S&P, banks around the world have faced renewed scrutiny on balance sheets and projected growth rates. Gold hit yet another new record today, as investors continued to pour into the safety of the asset. Spot gold hit a fourth consecutive session high above $1,911 an ounce before retracing.