Australia and New Zealand Banking Group shares are soaring today

The Australia and New Zealand Banking Group (ASX: ANZ) share price saw some reprieve this morning, rallying more than 3%, following heavy selloffs over recent weeks.

The ANZ Banking Group share price has been on a tumultuous ride so far in 2016, falling 18%.

Volatility in global markets has raised concerns for investors in Australia’s big banks, which rely on wholesale funding markets for a large part of their liquidity requirements.

China is also a big worry for ANZ Banking Group’s shareholders. China’s economy is transiting from one characterised by infrastructure spending to being consumption driven and its burgeoning debt pile is forcing many analysts to rethink the likely consequences for ANZ’s exposure to Asia.

Together with growing competition, share issuances, regulatory pressure, and peak profitability in the banking cycle now done and dusted, the ANZ share price has come under significant pressure.

In fact, year over year, the ANZ share price is down 36% — doubling the fall of the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) over the same period.

Foolish takeaway

ANZ (much like National Australia Bank Ltd. (ASX: NAB) and its other big bank brethren) has come under heavy selling pressure because the market is now anticipating below-average growth. For savvy investors thinking now is a good time to buy it’s important to differentiate between the market’s ‘noise’ and the underlying fundamentals of the business.

It’s also vital to base any investment on a ‘worst case’ assessment of a share’s value.

In my opinion, investors’ time could be better spent looking at some of the other 2,000+ shares listed on the ASX.

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Motley Fool writer/analyst Owen Raszkiewicz does not have a financial interest in any company mentioned. Owen welcomes -- and encourages -- your feedback on Google+, LinkedIn or you can follow him on Twitter @ASXinvest.

Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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