Financials Firm As Jobs Data Seen Backing Fed Hike Resolve - Financials Roundup

Features Dow Jones Newswires

Banks, lenders and other financial companies rose as traders bet the jobs report would spur a rate hike from the Federal Reserve. "The above-consensus payroll figure provided further ammunition for this week's selloff in the bond market and will augment the Fed's decision to begin balance sheet reduction sooner than later," said Charlie Ripley, Investment Strategist for Allianz Investment Management, US. "On balance, the labor market continues to be solid and despite the softer inflation data as of late, the solid employment data should keep the Fed on course for policy normalization." Quincy Krosby, chief market strategist at Prudential Financial, said the Fed has lowered the bar for the conditions needed for raising interest rates. Several Fed speakers have expressed concern that rates have been too low for two long. In addition, "many of the Fed speakers have said that the [stock] market is too expensive," said Ms. Krosby. "All of that pointing to a Fed that is determined to stay on its path moving toward normalization regardless of the response from the stock market."

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-Rob Curran, rob.curran@dowjones.com

(END) Dow Jones Newswires

July 07, 2017 16:44 ET (20:44 GMT)