Shares of banks and other financial institutions fell alongside Treasury yields as traders pushed back expectations for a Federal Reserve tapering of bond purchases.
Federal Reserve Chairman Jerome Powell's speech to the central bank's Jackson Hole, Wyo., conference suggested that the central bank is comfortable with the status quo, a development that one brokerage said could lead to a gradual increase in yields. "The dovish tilt to the speech is actually negative for bonds because it creates more upside potential for 10-year Treasury yields," said strategists at money manager UBS Global Wealth Management, in a note to clients.
"A strong August jobs report on Friday would reinforce our base case that tapering will commence in either November or December of this year," said Saira Malik, head of global equities at money manager Nuveen Investments.
China's top manager of distressed assets, China Huarong Asset Management, confirmed it made a net loss of roughly $16 billion last year, and warned investors that it fell short of regulatory requirements on financial strength.
Shares of international insurance giants such as Everest Re and RenaissanceRe have come under pressure as some analysts estimate the insured damage toll for Hurricane Ida to be in the range of $10 billion to $25 billion, one of the most expensive natural disasters in recent years.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
08-30-21 1713ET
