Global Markets Rise as Policymakers Battle Inflation
Global markets rose on Friday, with Asian stocks leading the way, as investors digested the implications of global policymakers' efforts to combat inflation.
The war in the Middle East has pushed oil prices above $US100 per barrel, fueling inflation concerns worldwide. However, a dip in Brent crude futures by 1.0% to $US103.77 per barrel provided some relief ahead of an expected rate hike from the Bank of Japan.
Traders took cues from a rally on Wall Street overnight, driven by beaten-down tech stocks. The bond market steadied after a brutal selloff this week, with the 10-year US Treasury yield retreating to 4.936%.
The Bank of England warned that it may need to hike rates if the Middle East war persists, while the Federal Reserve raised interest rates for the first time in three years and signaled more increases on the horizon.