Global shares retreated on Friday following strong reports on the U.S. economy, raising concerns about the possibility of high interest rates. In Europe, major indices like Germany’s DAX, France’s CAC 40, and Britain’s FTSE 100 all saw losses. Meanwhile, U.S. futures edged higher, and oil prices fell back.
In Asia, Japan’s Nikkei 225 index dropped 1.2% after the government reported lower-than-expected core inflation numbers for April. This led analysts to believe that the Bank of Japan may not raise interest rates anytime soon. In Hong Kong, the Hang Seng fell 1.5%, while the Shanghai Composite index dropped 0.9%.
The decline in shares was also seen in South Korea’s Kospi and Australia’s S&P/ASX 200. Taiwan’s Taiex slipped after hitting a record high the previous day.
In the U.S., most stocks slumped on Thursday as strong economic reports fueled concerns about high interest rates. The S&P 500, Dow Jones Industrial Average, and Nasdaq composite all saw declines.
The Federal Reserve is trying to balance slowing the economy to control inflation while avoiding a recession. The central bank has been holding interest rates at the highest level in over two decades. Wall Street is eager for some easing.
Overall, the global market sentiment remains cautious as investors monitor economic data and central bank actions closely.