The dollar firmed and equity markets fell on Friday as the impact of rising interest rates on the economy unsettled investors amid a growing chorus of central bank officials insisting monetary policy needs to remain ti7ght for some time.
U.S. mega-cap growth companies came under pressure, with Lyft Inc (LYFT.O) shares tumbling 35% after its first-quarter profit and revenue forecasts missed expectations. In Europe, German footwear maker Adidas’ dour forecast also spooked investors.
MSCI’s gauge of stocks across the globe (.MIWD00000PUS) shed 0.60%, while the dollar index rose 0.417%.
The yield on benchmark 10-year Treasury notes rose to the highest in more than a month and the 10-year German bund was poised to post its weekly biggest rise of 2023 as European Central Bank policymakers warned about inflation.
Broad disinflation has yet to start even if overall price growth has been in quick decline, ECB board member Isabel Schnabel said in a Twitter Q&A, the latest euro zone policymaker to say rates must rise further to combat inflation.
This report’s information was first seen on REUTERS; to read more, click this link.
