Shares of banks and other financial institutions rose as a flight from the sector slowed.
The Securities and Exchange Commission ordered Deutsche Bank asset-management unit DWS to pay $25 million to settle civil charges that it made misstatements regarding its ESG investment process and failed to develop a mutual fund anti-money-laundering program.
Chinese property developer China Evergrande’s shares fell after it scrapped a $35 billion debt-restructuring plan designed to ensure its survival and said it is unable to issue new debt.
One money manager argued that the Federal Reserve is protesting too much about its intentions not to give up the fight against inflation, indicating that it might, in fact, be finished raising rates. “In our view, a data-dependent Fed has no incentive to sound soft on inflation,” said Solita Marcelli, Chief Investment Officer Americas, UBS Global Wealth Management. “But an imminent end to rate hikes and the prospect of weaker growth as rates are kept higher for longer support our preference for fixed income …”
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