- 'Something was wrong', defendant in French mass rape tells court
- Hezbollah chief admits 'unprecedented' blow in device blasts
- Sales of US existing homes slip slightly in August
- Fear, panic haunt Lebanese after devices explode
- Labuschagne sparks Australia fightback in England ODI opener
- S.Africa's HIV research power couple says fight goes on
- Why is Israel focusing on border with Lebanon?
- Mpox vaccines administered in Rwanda, first in Africa
- US Fed rate cut is 'very positive sign' for economy: Yellen
- Unknown Mozart string trio discovered in Germany
- 'Are we five-year-olds?' F1 drivers won't mind their language
- Brazil judge orders X to reimpose block or face hefty fine
- Munich to rename stadium street after Beckenbauer
- Champions Italy to face Argentina in Davis Cup Final 8
- The winding, fitful path to weight loss drug Ozempic
- Italians defeat American Magic to reach Louis Vuitton Cup final
- Norris has 'nothing to lose' as he hunts Verstappen in Singapore
- Kyiv 'outraged' at Swiss showing of Russian war film
- French city renames Abbe Pierre square after abuse claims
- Footballer charged after huge cannabis seizure at UK airport
- Vatican recognises Medjugorje shrine, but not Virgin's messages
- Israel bombs Hezbollah strongholds in Lebanon after wave of deadly blasts
- Bank of England freezes rate after jumbo US cut
- Playing Nadal is 'kind of a nightmare', says Alcaraz
- Portugal tackles last of deadly northern forest fires
- Ton-up Ashwin lifts India to 339-6 against Bangladesh
- Departing NATO chief warns US against 'isolationism'
- Coming winter 'sternest test yet' for Ukraine energy grid
- Evacuations as tail of Storm Boris floods northeast Italy
- Lebanon's Hezbollah reeling after second wave of deadly blasts
- Taiwan recognises same-sex marriages between Chinese, Taiwanese
- Stock markets rally after jumbo US rate cut
- Gabon's ousted leader Bongo says renouncing politics for good
- Lebanon device blasts: what we know about deadly attacks
- Equity markets rally after jumbo US rate cut
- Late Harrods owner Al-Fayed accused of rape: BBC
- Hong Kong man sentenced 14 months for wearing 'seditious' T-shirt
- Lebanon's Hezbollah in disarray after second wave of deadly blasts
- Equity markets, yen rally after jumbo US rate cut
- Meta and Spotify blast EU decisions on AI
- Hasan takes three as Bangladesh rattle India in first Test
- Two killed during police operation in New Caledonia
- Flood-hit region leaders to meet in Poland to discuss EU aid
- Sri Lanka to vote in first poll since economic collapse
- Hong Kong probe finds Cathay Airbus defect could cause 'extensive' damage
- AI development cannot be left to market whim, UN experts warn
- All Blacks primed for 'hell' of a Wallabies clash
- Japan firm says no longer makes radio reportedly used in Lebanon blasts
- Zoom fatigue? Try some nature in your background: study
- Boeing to start large-scale furloughs with Seattle strike talks stalled
RBGPF | 5.79% | 60.5 | $ | |
CMSC | -0.18% | 25.01 | $ | |
BCC | 3.81% | 142.495 | $ | |
BTI | -0.54% | 37.675 | $ | |
GSK | -1.03% | 41.996 | $ | |
SCS | -7.79% | 13.09 | $ | |
BP | 2.2% | 33.158 | $ | |
RYCEF | 5.48% | 6.93 | $ | |
NGG | -2% | 68.675 | $ | |
RIO | 3.8% | 65.395 | $ | |
JRI | -0.37% | 13.39 | $ | |
VOD | -1.74% | 10.055 | $ | |
CMSD | 0.4% | 25.08 | $ | |
BCE | -0.48% | 35.44 | $ | |
RELX | 1.33% | 48.01 | $ | |
AZN | 0.66% | 79.105 | $ |
Stocks rattled by US inflation surge
European and Asian stock markets fell Friday on fears the Federal Reserve will move more aggressively to tighten monetary policy to tame decades-high inflation.
Wall Street, which finished sharply lower Thursday on the inflation data, opened modestly higher as concerns about the Fed's possible response faded somewhat.
The 7.5-percent jump in US consumer prices last month was the fastest in 40 years and reinforced fears that the central bank is falling behind the curve in keeping it under control.
Sentiment was also hit by remarks from Fed official James Bullard, who said he wanted to see interest rates lifted one percentage point by the start of July.
The St Louis Fed boss said he was in favour of a 50 basis point lift next month -- double the usual rise and the first since 2000 -- and two more after that.
"I'd like to see 100 basis points in the bag by July 1," Bullard, who has a vote on policy this year, told Bloomberg News. "I was already more hawkish but I have pulled up dramatically what I think the committee should do."
He added: "I do not think it is shock and awe.
"I think it is a sensible response to a surprise inflationary shock that we got during 2021 that we did not expect."
Bullard also said he was open to a very rare announcement of rate hikes between meetings, which further rattled traders who fretted about a move before March, while calling for the quick reduction of the bank's bond holdings that have helped keep rates subdued.
US Treasury yields -- a guide to future borrowing costs -- have risen above two percent and analysts are predicting up to seven Fed rate hikes this year.
"The embers are still smoldering this morning, but a Bloomberg report that discusses some Fed members pushing back on the idea of a 50 basis points hike at the March meeting, or some type of inter-meeting rate hike, has poured some cold water on the rate-hike fire for now," said Patrick O'Hare at Briefing.com
In Europe, London equities slid as investors set aside rebounding 2021 economic growth to focus on shrinking December activity in the wake of the Omicron Covid variant.
The UK economy grew by a record 7.5 percent last year to rebound from the pandemic crash, but shrank by a modest 0.2 percent in the final month, official data showed.
In the eurozone, Frankfurt and Paris stocks banked lower, mirroring Asia after overnight Wall Street losses.
Separately on Friday, the International Energy Agency ramped up its 2022 demand outlook to 100.6 million barrels of crude oil per day, an increase of 3.2 million, as governments further ease Covid restrictions.
"Oil prices are rallying once more as the IEA raised forecasts for demand this year and confirmed that OPEC+ missed its output targets again in January and by an even wider margin of 900,000 barrels," said Craig Erlam at trading platform OANDA.
- Key figures around 1430 GMT -
London - FTSE 100: DOWN 0.6 percent at 7,626.33 points
Frankfurt - DAX: DOWN 0.2 percent at 15,463.56
Paris - CAC 40: DOWN 0.9 percent at 7,037.59
EURO STOXX 50: DOWN 0.7 percent at 4,168.92
New York - Dow: UP 0.2 percent at 35,302.35
Hong Kong - Hang Seng Index: DOWN 0.1 percent at 24,906.66 (close)
Shanghai - Composite: DOWN 0.7 percent at 3,462.95 (close)
Tokyo - Nikkei 225: Closed for a holiday
Euro/dollar: DOWN at $1.1397 from $1.1428 late Thursday
Pound/dollar: UP at $1.3573 from $1.3557
Euro/pound: DOWN at 83.93 pence from 84.29 pence
Dollar/yen: DOWN at 115.88 yen from 116.01 yen
Brent North Sea crude: UP 1.0 percent at $92.32 per barrel
West Texas Intermediate: UP 1.2 percent at $90.93 per barrel
burs-rl/lth
G.Schulte--BTB