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.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
09-28-22 1723ET
