Banks, lenders and other financial companies ticked down as traders interpreted the Federal Reserve's meeting minutes as somewhat noncommital on a widely anticipated June rate rise.
A Department of Labor decision to allow aspects of the Fiduciary Rule to go into force on June 9 rather than fighting them as previously planned is more significant on a symbolic rather than a practical level. "We expect this decision to have limited impact on near-term broker earnings, as the firms have been planning to comply for some time and the rule still faces notice/comment before the final implementation date of Jan. 2018," said analysts at brokerage Nomura Securities, in a research note.
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Financial stocks were also jolted by Moody's downgrade of China's debt, the first of its kind in nearly three decades. Moody's cited high debt levels and the cooling effect of overcapacity on economic growth; China objected to the methodology.
BNP Paribas agreed to pay a $350 million penalty to resolve allegations by New York's banking regulator that foreign-exchange traders at the French bank conspired to manipulate currency rates.
(-By Rob Curran, email@example.com)
(END) Dow Jones Newswires
May 24, 2017 16:41 ET (20:41 GMT)