Financial stocks slide as jobs data keeps Fed on track for rate hikes – Financial Report


Shares of banks and other financial institutions fell as new jobs data keeps the Fed firmly on track to raise interest rates by half a percentage point at its meeting in two weeks and again at the end of July to calm high inflation.

With Fed officials largely united on the need for a half-point hike at their June and July policy meetings, the debate shifted to what should happen at the next meeting in September.

Meanwhile, Fitch Ratings withdrew its credit ratings on China Evergrande Group and two subsidiaries, citing insufficient information.

“Evergrande and its subsidiaries have elected to no longer participate in the ratings process,” the ratings firm said in a statement Thursday.

Allianz SE announced on Friday that it had agreed to sell a majority stake in its Russian business after deciding to reduce its operations in the country.

The German financial services company will sell the stake to Interholding LLC, owner of Russian insurer Zetta Insurance. Allianz will retain a 49.9% stake.

The Commodity Futures Trading Commission has sued the crypto firm owned by billionaire Winklevoss brothers, claiming it misled regulators in an effort to win approval for bitcoin futures in 2017.

Gemini Trust Co. provided bitcoin prices to Cboe Global Markets Inc., which launched a bitcoin futures product in December 2017. An auction hosted by Gemini determined how the bitcoin contract would settle on the last day before expiration , ensuring a tight link between the futures contracts. and the bitcoin market itself.

The CFTC lawsuit amounts to an attack on one of the crypto industry’s best-known brands, accusing the company of using undisclosed inducements to trade goose during a significant period of the day .

A Citigroup trader who sent European stock indices into a tailspin last month was working from home and received several alerts before his order went live, people familiar with the matter said. The bank was able to quickly reverse some transactions, but faced losses of around $50 million, one of the people said.

On May 2, the London trader, working from home on a bank holiday, entered the wrong number while trying to place an order for a customer, the sources said.

Write to Amy Pessetto at

(END) Dow Jones Newswire

06-03-22 1658ET


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