Shares of banks and other financial institutions rose after the Bank of England pledged to buy British gilt bonds, easing a rout in sterling.
Violent moves in global bond yields in recent weeks have disquieted investors. The benchmark yield on the 10-year Treasury note saw its biggest drop since 2009 Wednesday. The yield was on pace for its largest gain in the first three quarters of a year since 1981, during the height of the last stagflationary era.
"The fact that risk-free [bonds] move so much, it's bad," said Lorenzo Di Mattia, manager of hedge fund Sibilla Global Fund.
For the British pound sterling, moves have been even more extreme, with a 6% drop in the two sessions after Chancellor Kwasi Kwarteng unveiled tax-cut plans on Friday. The reprieve for sterling and the global markets could be temporary amid widespread concerns about Mr. Kwarteng's deficit-building budget.
"The Chancellor is likely to come under increased pressure to change course," said analysts at brokerage BNP Paribas, in a note to clients.
Regions Financial agreed to pay $191 million to settle a regulator's accusations that it charged surprise overdraft fees that harmed its customers.
Jefferies Financial Group's profit dropped in the third quarter, as investment banking revenue slowed.
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(END) Dow Jones Newswires