It has been a disappointing start to the week for the benchmark S&P/ASX 200 (Index: ^AXJO) (ASX: XJO).
In afternoon trade the index is down around 0.6% due largely to declines in the banking sector.
Here is the state of play in the sector at the time of writing.
The Australia and New Zealand Banking Group (ASX: ANZ) share price is down almost 2.5% to $25.57.
The Commonwealth Bank of Australia (ASX: CBA) share price is the best performer in the group with a 1.5% decline.
The National Australia Bank Ltd (ASX: NAB) share price has tumbled 2% lower to $24.25.
The Westpac Banking Corp (ASX: WBC) share price has fallen a disappointing 2.5% to $25.26.
Why are the banks tumbling lower on Tuesday?
The catalyst for these declines appears to be news that the Royal Commission final report is going to be released to the market next Monday.
According to a media release by Treasurer Josh Frydenberg, the Australian Government will receive the final report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry on Friday.
The final report will then be publicly released at 4.10pm on Monday February 4, following the close of trading on the ASX. Mr Frydenberg will hold a press conference shortly after the release.
I suspect that investors are a touch nervous ahead of the release and have been locking in gains today. After all, the banks have been some of the strongest performers on the ASX 200 since Christmas Eve.
Prior to today, since Christmas Eve ANZ's shares were up 12%, CBA's had risen 4.1%, NAB's shares had climbed 8%, and Westpac's shares had zoomed 8.5% higher.
Should you invest?
Although I'm confident the final report will hold no nasty surprises, I don't believe it is worth the risk investing in bank shares this week. Instead, I would wait for the recommendations to be announced and understood before considering an investment.
