Financial stocks were falling pre-bell Thursday, with the State Street Financial Select Sector SPDR ETF (XLF) declining by 1.4%.

The Direxion Daily Financial Bull 3X Shares (FAS) was 4.1% lower and its bearish counterpart Direxion Daily Financial Bear 3X Shares (FAZ) was up 4.1%.

BlackRock (BLK) is increasing bearish bets on German government bonds, citing expectations of a renewed inflation surge across Europe and rising fiscal spending pressures, Bloomberg reported. Shares of BlackRock were down more than 2% premarket.

Lloyds Banking Group (LYG) said it does not plan to change provisions for motor finance mis-selling compensation after assessing the final rules issued by the Financial Conduct Authority. Lloyds Banking Group stock was down more than 2% pre-bell.

Ares Management (ARES) said it raised about $5.40 billion in capital to invest in value-add real estate opportunities across high-conviction markets in the US and Europe. Ares Management shares were down more than 3% premarket.