Shares of banks and other financial institutions fell as volatility continued to wash through global markets.
Surprisingly hawkish Federal Reserve minutes generated the biggest selloff for tech stocks in a decade Wednesday, and that created aftershocks in stock and bond markets Thursday.
"We expect volatility to stay elevated during 2022 as several tail risks could derail our benign baseline macro outlook," warned derivatives strategists at brokerage Barclays, in a note to clients. Among the risks to the global stock market are the "Omicron situation, 'supply chain bottlenecks,' a slowdown in consumption and a 'hard landing'" in China, the strategists warned.
In a good sign for banking profits, the yield on the 10-year Treasury note rose to 1.733%, the highest level since March.
French banking giant Société Générale's vehicle-leasing business, ALD SA, agreed to acquire rival LeasePlan Corp. in a cash-and-share deal worth EUR4.9 billion as it doubles down on a business seldom associated with banking.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
01-06-22 1733ET
