Banks, lenders and other financial companies fell as hopes for higher lending rates diminished in light of a flight from risk.
The yield on 10-year Treasury bond was at its lowest since November 2016 in the immediate aftermath of the presidential election. The latest wave of risk aversion was sparked by insurers and reinsurers declining as another catastrophe threatened to follow on the heels of Hurricane Harvey and hit southern Florida, potentially generating losses for property and casualty insurers such as Travelers.
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Shares of reinsurers fell on the assumption that some insurers will have laid off to the secondary risk carriers. Among that group, XL Group and Everest Re Group fell by 5% or more.
Citigroup created an investment-banking unit for payment services, a sign that the burst of deal making in the payments-processing sector in Europe and the U.S. is set to continue.
Rob Curran, firstname.lastname@example.org
(END) Dow Jones Newswires
September 05, 2017 16:52 ET (20:52 GMT)