Central Banks Unite: Global Markets Slide as Hawkish Approach Takes Hold

Global markets took a dip on Friday as central banks around the world tightened their monetary policy to combat inflation concerns. The Bank of Japan raised its policy rate to 1.25%, a 31-year high, and the Federal Reserve adopted a more aggressive stance on inflation after raising rates for the first time in three years.

The European Central Bank also signaled further tightening could be needed after raising rates last week. Despite this, US stock futures gained between 0.3% and 0.6%, supported by technology shares.

Oil prices provided some relief on Friday, with Brent crude futures falling as much as 2.8% to $101.92. However, the Middle East conflict and oil prices above $100 continue to fuel inflation concerns, which may force central banks to maintain tighter monetary policy.