Federal Reserve Chairman Jerome Powell said on Thursday that a half-point rate hike would be “on the table” at the May meeting, adding that it would be appropriate to “move a little faster.”
European Central Bank officials said on Thursday that rates in the euro zone could start to rise in July, while the Bank of England’s Catherine Mann said the cost of borrowing is likely to rise further.
“The Fed, the ECB and the Bank of England have made aggressive comments in the markets and they have reacted,” said Monica Defend, director of the Amundi Institute, although she added that “for the euro zone we are more skeptical about the fragility of the economic cycle And there is great potential for recession in Germany and Italy.”
MSCI’s global stock index was down 0.49%, its lowest since mid-March, and headed for a 0.75% decline for the week.
S&P 500 futures were down 0.25% after the day before’s plunge in Wall Street indices. European shares were down 1.3% and France’s CAC 40 was down 1.63% ahead of Sunday’s presidential runoff. The British FTSE lost 0.8%.
Selling pressure persisted in bond markets, pushing five-year Treasury yields to 3.049% and two-year notes to 2.776%, both to their highest since late 2018.
In currency markets, the yuan hit a nine-month low and headed for its worst week since 2018. JPMorgan cut its forecast for the currency on Friday, adding to the increasingly gloomy view of the yuan among major banks in the US. investment.
The dollar was flat against the Japanese currency at 128.35 yen after talk of a joint Japan-US currency intervention.
The euro was little changed at $1.0822, capping Thursday’s rebound as nerves mount over Sunday’s French presidential election. The dollar index rose 0.2%, approaching recent two-year highs.
Sterling fell to its lowest since late 2020 against the dollar after British retail sales fell more than expected in March.
MSCI’s broader index of Asia-Pacific shares excluding Japan fell 1.1% to a five-week low. The Japanese Nikkei fell 1.63%.
Crude prices fell close to $1.50, weighed down by the prospect of higher interest rates, weak global growth and the COVID-19 lockdowns in China, which hurt demand, even at a time when The EU is considering a ban on Russian oil.
Spot gold was down 0.9% at $1,933.73 per ounce.
By Carolyn Cohn of Reuters news agency
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
