Global Stock Markets Retreat as Central Banks Hike Interest Rates

Global stock markets retreated on Friday as investors reacted to recent central bank rate hikes aimed at taming inflation driven by the Middle East war.

The US Federal Reserve raised borrowing costs, providing relief to traders who were concerned that policymakers were not moving quickly enough to address a spike in inflation that could hurt the world's biggest economy.

European markets suffered sharper losses, with Frankfurt, London, and Paris all down around 1.5 percent.

The Bank of Japan raised interest rates to a three-decade high on Friday, but the yen sank against the dollar due to concerns about the pace of hikes being slower than expected.