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- 1 U.S. Bancorp is currently trading at $39.45 (press time) with a rise of 2.65% in the last 24 hours.
- 2 USB gave a return of 18.97% last month.
- 3 MUFG and USB have strengthened their strategic partnership.
U.S. Bancorp provides a range of financial solutions for individuals and businesses across the U.S. and internationally. The company’s services include banking, investing, lending, wealth management, and payment processing. U.S. Bancorp trades on the NYSE under the ticker USB.
MUFG and USB have strengthened their strategic partnership, which began when USB bought MUFG Union Bank in December 2022. The banks plan to work together in various areas, such as digital banking, corporate deals, financial services for Japanese clients, and global markets.
MUFG also improved its non-yen funding ability by signing a dollar liquidity support deal with a USB unit. This is crucial for MUFG and other Japanese banks, as they struggle to find stable and low-cost dollar funding in the US, where they lack a big retail deposit base. USB also increased its capital levels by about 20 basis points in its CET1 ratio.
USB and MUFG are among the biggest banks in the US, with operations in 26 states and the District of Columbia. USB said on September 21, 2021, that it has agreed to buy MUFG Union Bank’s main regional banking business from MUFG for about $8 Billion. The deal includes $5.5 Billion in cash and around 44 Million shares of USB stock
The deal will boost USB’s existing presence on the West Coast and offer customers more access to top-notch technology, products, and customer service. USB will keep all of MUFG Union Bank’s branch staff.
MUFG said on August 3, 2023, that it has agreed to buy another 24 Million shares of USB stock for about $936 Million, or $39 per share. This will raise MUFG’s stake in USB from 2.9% to 4.4%. MUFG said that this investment shows its trust in USB’s long-term growth and strategic value.
USB Stock Price Technical Analysis
USB stock price is currently trying to break the 200-day simple moving average (SMA), which is a key indicator of the long-term trend. If the price breaks above the 200 SMA, it could signal the start of an uptrend.
MACD is in a bullish area and indicates a positive scenario.
RSI is currently in the overbought zone. RSI is at 65.24 points and indicates bullishness in the market.
USB stock price is showing signs of strength and potential for further growth, but it also faces some resistance and possible volatility. Investors should watch the 200 SMA level closely and monitor the MACD and RSI indicators for any changes in trends or momentum.
Summary
The MUFG and USB deal is a strategic move that benefits both banks in terms of growth, funding, and partnership. The deal also reflects the confidence of MUFG in USB’s performance and value. USB stock price is showing positive signs of breaking the 200 SMA and entering a new uptrend, but it also faces some challenges and uncertainties. Investors should be cautious and vigilant of the market indicators and the potential risks and opportunities.
Technical Levels
Support level: 31.60
Resistance level: 45.16.
Disclaimer
The information provided in this article is for educational purposes only and does not constitute investment advice. Technical analysis is based on historical patterns and trends and does not guarantee future results. Trading involves risks and you should only invest what you can afford to lose.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
