Financial stocks climb as Fed signals possible rate hike



Shares of banks and lenders rallied as the Federal Reserve signaled it could start canceling its pandemic stimulus packages in November and could raise interest rates next year.

The Fed’s rate-setting committee revised its statement after the meeting to say it could start cutting, or cutting, its $ 120 billion in monthly asset purchases as early as its next scheduled meeting, on 2 and November 3. Fed Chairman Jerome Powell told a news conference officials generally agreed at their meeting that “a phase-down process that ends around the middle of next year would be probably appropriate “.

Evergrande Group’s flagship real estate firm in China has said it will pay interest on an onshore bond, giving the heavily leveraged conglomerate more time to figure out what investors expect from a long and complicated restructuring. However, another test will come on Thursday when an interest payment on a dollar-denominated bond is due.

The Financial Accounting Standards Board has proposed a rule that would require companies to disclose the key terms and size of their supply chain finance, a move to help investors better understand the mechanism of short-term borrowing.

Invesco, one of the largest exchange-traded fund operators in the United States, plans to deploy a range of funds backed by bitcoin and other cryptocurrencies. The Atlanta-based asset manager will join forces with nascent digital asset firm Galaxy Digital Holdings to develop US-listed ETFs that hold and track the performance of bitcoin and other cryptocurrencies, while trading like a stock.

 Write to Amy Pessetto at

(END) Dow Jones Newswires

09-22-21 1734ET



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