Stock Markets Retreat as Central Banks Hike Rates Amid Ongoing Conflict

Global stock markets retreated on Friday as investors digested the latest central bank rate hikes aimed at taming inflation driven by the ongoing Middle East conflict.

The US Federal Reserve raised borrowing costs, providing relief to traders concerned about policymakers' pace in addressing a spike in inflation that could impact the world's biggest economy.

In Europe, Frankfurt, London, and Paris lost around 1.5% after a mixed opening on Wall Street, where main indices were modestly lower in late morning trading.

The Bank of Japan increased interest rates to a three-decade high, but the yen sank against the dollar due to fears that the pace of hikes might be slower than expected.