Sector Update: Financial Stocks Slide Friday Afternoon

MT Newswires Live10-11

Financial stocks were falling in Friday afternoon trading, with the NYSE Financial Index down 1.3% and the Financial Select Sector SPDR Fund (XLF) dropping 1.4%.

The Philadelphia Housing Index shed 0.7%, and the Real Estate Select Sector SPDR Fund (XLRE) was decreasing 0.8%.

Bitcoin (BTC-USD) was declining 3% to $118,133, and the yield for 10-year US Treasuries was dropping 8 basis points to 4.06%.

In economic news, President Donald Trump warned of a "massive" increase in tariffs on China, the world's second-largest economy. "One of the policies that we are calculating at this moment is a massive increase of tariffs on Chinese products coming into the United States of America," Trump said in a Truth Social post Friday.

The University of Michigan's preliminary consumer sentiment index slipped to 55.0 in October from 55.1 in September, compared with expectations for 54.0 in a survey compiled by Bloomberg.

The partial shutdown of the US federal government entered its 10th day as funding bills from Democrats and Republicans reportedly failed in the Senate for the seventh time. No further votes are expected until Tuesday, meaning the stalemate will extend into next week, CBS News reported.

In corporate news, Carlyle (CG) agreed to buy German chemical producer BASF's coatings business in partnership with Qatar Investment Authority for about 7.7 billion euros ($8.91 billion). Carlyle shares were down about 4%.

Goldman Sachs (GS) and Bank of America (BAC) are among the lenders preparing more than 4 billion euros ($4.63 billion) in debt to finance Carlyle's purchase of a stake in BASF's coatings business, Bloomberg reported. Goldman shares fell 1.7%, and Bank of America shed 1.5%.

American International (AIG), Allianz, and Coface are among insurers preparing to face potential claims relating to the bankruptcy of First Brands Group, the Financial Times reported. American International shares were down 1.6%.

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