Central Banks Ramp Up Inflation Fight as Global Markets Falter

Global stock markets fell on Friday as investors reacted to a series of interest rate hikes by central banks aiming to combat inflation. The S&P 500 and Dow Jones Industrial Average declined, while the Nasdaq Composite managed a small gain despite falling 0.1%.

The move comes amid ongoing concerns about oil prices, which remain above $100 per barrel due to the war in the Middle East. This has heightened inflation fears globally, leading central banks to reassess their monetary policies.

Japanese government bonds fell and the yen weakened after the Bank of Japan raised interest rates to a 31-year high of 1.25%. The decision was expected but excited 'yen bears', with two board members dissenting from the hike.

The US Treasury yield rose, reaching its highest level since 2007 at 4.947%, while bond yields across the eurozone and in Britain also hit multi-year highs.