Stock Markets Diverge Amid Central Bank Rate Hikes

Global stock markets diverged on Friday as central banks continued to raise interest rates in an effort to combat inflation driven by the ongoing war in the Middle East.

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.

However, the move was met with skepticism by some analysts, who noted that 'there isn't much conviction in key corners of the capital markets.'

The Bank of Japan also raised interest rates to their highest level since 1995, but the yen sank against the dollar on fears that the pace of hikes might be slower than expected.

Oil prices fell around two percent on hopes that Saudi Arabia was moving to restore about half of crude shipments within days after they were disrupted by the stoppage of its East-West pipeline to the Red Sea.