Why is the Macquarie (ASX:MQG) share price falling this week?

Shares in Macquarie Group have taken a turn for the worse…

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Key points

  • The Macquarie Group share price is down almost 5% this week
  • All ASX bank shares have fallen in the past 48 hours
  • The S&P/ASX 200 Financials Index is in the red today

The Macquarie Group Ltd (ASX: MQG) share price has been a standout performer on the ASX in the past year, but this hasn’t been a good week.

Shares in the investment bank are currently trading at $196.61, down 4.89% so far this week. The company’s shares are down 1.3% today.

Let’s take a look at what may be impacting the company this week.

Wall Street woes

The Macquarie share price may be falling this week, but it is not alone. Most of this fall has taken place within the last 48 hours. Since market close on January 18, the company’s shares have fallen 4.95%.

In the same time frame, the Commonwealth Bank of Australia (ASX: CBA) share price has fallen 3.02%, National Australia Bank Ltd (ASX: NAB) shares have dropped 2.32%, the Westpac Banking Corp (ASX: WBC) share price has slumped 1.64% and Australia and New Zealand Banking Group Ltd (ASX: ANZ) has dropped 1.01%.

The performance of financial shares in the United States appears to have weighed on Australian bank shares including Macquarie. The Dow Jones US Financial Index fell 1.53% overnight and has fallen 3.31% in the past two days.

Goldman Sachs Group (NYSE: GS) fell 8.79% in the first two days of trading in the US this week. Investors reacted to the company’s profit dropping 13% on the previous year, the New York Times reported.

There has also been speculation that the US Federal Reserve is considering fast-tracking interest rate rises due to inflation concerns. This has the potential to affect ASX shares, as the Reserve Bank of Australia can take its lead from the US.

Back home, the S&P/ASX 200 Financials Index (ASX: XFJ) is 1.05% in the red today and has dropped 2.31% since market close on 18 January.

Macquarie bumped Westpac to become Australia’s third-largest Aussie bank on Wednesday last week. However, at the time of writing, Westpac has edged out Macquarie Bank again with a higher market capitalisation.

Macquarie share price snapshot

The Macquarie share price has soared 41.95% in the past year but is down 4.32% this year to date.

In contrast, the S&P/ASX 200 Index (ASX: XJO) has returned about 8% in the past year.

Macquarie Group has a market capitalisation of about $76.4 billion based on its current share price.

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Motley Fool contributor Monica O'Shea has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group Limited and Westpac Banking Corporation. 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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