- Sheinbaum to take office as Mexico's first woman president
- Scientists fear underfunded Argentina research on verge of collapse
- US port officials gird for strike despite last-minute bargaining
- With 118 dead from Hurricane Helene, Biden defends US government response
- Breeder who tried to create enormous trophy sheep jailed in US
- Qatar Airways seeking 25% stake in Virgin Australia
- US port officials gird for strike as labor talks stay stuck
- As toll crosses 100, Trump puts Hurricane Helene at election center stage
- US Fed Chair sees 'further disinflation' in economy
- Epic Games sues Google and Samsung over app store
- Officials see no shortages from likely US port strike
- UK families of Gaza hostages warn Lebanon attack 'takes focus away'
- Shares in Stellantis, Aston Martin skid on profit warnings
- Dali prints found in London garage sold at auction
- ECB chief backs bank mergers amid UniCredit, Commerzbank talk
- China stocks soar on stimulus, but US and Europe retreat
- 100 dead in storm Helene damage, flooding across US southeast
- China stocks soar on stimulus, Europe slides on automaker woes
- German antitrust watchdog steps up monitoring of Microsoft
- Nepal's urban poor count cost of 'nightmare' floods
- E.Guinea, Gabon clash at ICJ over oil-rich islands
- New blow for UK's Starmer as growth data disappoints
- China's top banks to tweak mortgage rates to boost housing market
- Muslim women break taboos navigating east London's waterways
- Nepal dam-building spree powers electric vehicle boom
- More than 60 dead from storm Helene as rescue, cleanup efforts grow
- Dozens missing, 9 dead in migrant boat wreck off Spanish Canaries
- Death toll from Hurricane John hits eight in Mexico
- Storm Helene's toll rises as rescue and cleanup efforts gain pace
- SpaceX launches mission to return stranded astronauts
- Storm Helene kills 44, threatens more 'catastrophic' flooding as cleanup begins
- SpaceX set to launch mission to return stranded astronauts
- Storm Helene kills 44, threatens more 'catastrophic' flooding
- Boeing strike grinds on as latest talks fail to reach agreement
- Iran 'news' sites, hackers target Trump ahead of US election
- US ports brace for potential dockworkers strike
- Japan's speedy, spotless Shinkansen bullet trains turn 60
- US hurricane deaths rise to 44, fears of more 'catastrophic' flooding
- Global stocks mostly rise, cheering Beijing stimulus
- Europe en route for Moon with new simulator, says astronaut Pesquet
- Fireworks forecast if comet survives risky Sun flypast
- Argentina judge orders dictionary to delete pejorative definition of 'Jewish'
- Global stocks rise on rate hopes, Beijing stimulus
- S.African woman turns 118, among the oldest in the world
- UK clears $4 bn AI partnership between Amazon, Anthropic
- Barca fans barred from Champions League away game over racist banner
- Chinese stocks extend surge, Europe higher on Beijing stimulus
- Pope says Church must 'seek forgiveness' for child sexual abuse
- China caps week of 'bazooka' stimulus for ailing economy with rate cut
- Cuts, cash, credit: China bids to jumpstart flagging economy
RBGPF | 7.18% | 64.75 | $ | |
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Global markets mostly sink on Fed chief's remarks
Asian and European stocks mostly sank Friday on hawkish comments from the Federal Reserve about its monetary tightening plans, sending the dollar sharply higher against the euro.
Frankfurt stocks dived 1.9 percent and Paris slid 1.7 percent in early afternoon eurozone deals, as investors shrugged off a survey showing that the bloc's economic activity accelerated in April.
London shed 0.7 percent around midday with losses capped by the slumping pound that boosts share prices of multinationals.
Sterling slumped against the dollar after data showed tumbling retail sales as Britons face a cost-of-living crisis.
The pound briefly hit an October 2020 low as British Prime Minister Boris Johnson comes under renewed political pressure.
Oil prices slumped on demand fears arising from rising interest rates in the United States and ongoing Covid restrictions in China.
- 'Cat among pigeons' -
Markets remain shaken after Fed Chairman Jerome Powell exacerbated worries over higher US interest rates late on Thursday.
Powell, who has signalled that the Fed will have to move more aggressively to counter decades-high US inflation, stated that a half-point interest rate increase was "on the table" for next month's meeting, sending Wall Street tanking.
"Further hawkish comments from the Federal Reserve Chair put another cat among the pigeons in a day of violent swings," said Richard Hunter, head of markets at Interactive Investor.
"Quite apart from the widely expected 0.5 percent rate hike in May, this could also imply similar rises in subsequent months."
That stoked worries that the Fed could send the US economy's pandemic recovery back into reverse.
"While the news should not have come as too much of a surprise, investors rushed for the exit as concerns of over-tightening and recession came back into focus," said Hunter.
Sharp price rises are forcing major global central banks to hike interest rates, in turn curbing recovery from the pandemic.
Higher lending rates tend to weigh on companies' share prices as they increase interest repayments on loans, while also further reducing consumers' incomes.
In Asia on Friday, Tokyo stocks slid more than 1.5 percent even as inflation data from Japan was in line with market expectations.
But Shanghai finished marginally higher as some Chinese Covid curbs were eased and the nation's securities regulator pushed banks and insurers to buy more stocks to lift ailing equities.
- Key figures around 1045 GMT -
London - FTSE 100: DOWN 0.8 percent at 7,568.34 points
Paris - CAC 40: DOWN 1.7 percent at 6,600.20
Frankfurt - DAX: DOWN 1.9 percent at 14,228.81
EURO STOXX 50: DOWN 1.9 percent at 3,854.39
Tokyo - Nikkei 225: DOWN 1.6 percent at 27,105.26 (close)
Hong Kong - Hang Seng Index: DOWN 0.2 percent at 20,638.52 (close)
Shanghai - Composite: UP 0.2 percent at 3,086.92 (close)
New York - Dow: DOWN 1.1 percent at 34,792.76 (close)
Euro/dollar: DOWN at $1.0805 from $1.0834 late on Thursday
Dollar/yen: DOWN at 128.36 yen from 128.38 yen
Pound/dollar: DOWN at $1.2892 from $1.3030
Euro/pound: UP at 83.82 pence from 83.15 pence
Brent North Sea crude: DOWN 1.6 percent at $106.63 per barrel
West Texas Intermediate: DOWN 1.7 percent at $101.66 per barrel
burs-rfj/bcp/lth
A.Mykhailo--CPN