Financials Higher on Rate Bets -- Financials Roundup

Features Dow Jones Newswires

Banks, lenders and other financial companies rose as traders doubled down on interest-rate bets, despite weak inflation data.

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The Federal Reserve's preferred price gauge, the personal-consumption expenditures price index, rose 0.1% in August, excluding volatile food and energy prices, from a year earlier, the Commerce Department said.

Fed officials have recently indicated they are eager to raise rates again this year, unless there is a marked shift in economic data. Traditionally, the central bank leans against rate rises when inflation data is weak.

Japan's Financial Services Agency handed out its first licenses for digital-currency exchanges, allowing them to operate legally in the country and further solidifying the upstart currency's status in the world's third-largest economy.

President Donald Trump and Treasury Secretary Steven Mnuchin interviewed Fed Governor Jerome Powell to discuss his potential nomination to become central-bank chairman as the search for a successor for Janet Yellen continues, The Wall Street Journal reported.

The Fed said a former HSBC executive misused confidential information while carrying out foreign exchange trades for a client, and it fined the bank $175 million for more broadly failing to supervise its forex trading business.

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Rob Curran, rob.curran@dowjones.com

(END) Dow Jones Newswires

September 29, 2017 17:24 ET (21:24 GMT)