Financial Shares Rise as Jobs Data Cast Doubt on Fed Moves – Financials Roundup

Shares of banks and other financial institutions moved higher.

The July jobs report defied expectations of an economic slowdown and will make it harder for the Federal Reserve to dial back the pace of rate increases at its meeting next month. The Fed is trying to slow economic activity and hiring to bring down inflation that is running at 40-year highs.

Friday’s job report shows the economy is still firing on many cylinders, making it more likely central that bank officials will conclude they need to raise rates to higher levels and to keep rates at those levels for longer to cool the economy.

Embattled Chinese property giant China Evergrande is canceling a contract to build what was slated to be the world’s largest soccer stadium and is returning land-use rights for the site to the government of Guangzhou in its home province. Evergrande said it would receive a refund equivalent to about $ 818 million, and intends to use the money to help repay a mountain of debt.

In earnings news, Allianz said second-quarter net profit tumbled but operating profit rose, confirming full-year guidance despite its asset-management business struggling amid turbulent markets.

London Stock Exchange Group reported a significant rise in pretax profit for the first half of 2022 and said it is launching a share buyback program with an aggregate value of up to GBP750 million ($ 911.9 million).

Write to Amy Pessetto at [email protected]

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