Financials Down on Global Market Volatility -- Financials Roundup

Shares of banks and other financial institutions fell sharply as another wave of volatility washed through global markets.

Both the Bank of England and the Swiss National Bank paused interest-rate hikes, stirring concerns that a global economic slowdown was on the horizon. In his press conference, Federal Reserve Chairman Jerome Powell seemed to suggest that the U.S. may have to endure a recession to conclusively vanquish inflation.

"Higher for longer could eventually translate into no Fed rate cuts in 2024," said Edward Moya, senior market analyst at foreign-exchange brokerage Oanda Group.

"While the market is believing the Bank of England and European Central Bank might be done raising rates, rough economic times are quickly coming to Europe as both the Fed will keep the global bond market selloff going and as OPEC+ will keep energy prices heading higher," Moya said.

Write to Rob Curran at [e-mail]

(END) Dow Jones Newswires

09-21-23 1710ET