The MSCI All-World Index fell 0.06% but remained near its highest level since mid-April 2022. Major stock indexes on Wall Street ended lower but posted strong weekly gains, Reuters reported.
Ending an intense week of central bank action, the Bank of Japan maintained its ultra-easy monetary policy on Friday despite stronger-than-expected inflation. Earlier in the week, the Federal Reserve kept interest rates unchanged while proposing more increases later in the year, and the European Central Bank rose by a quarter point.
“We’ve had a very constructive week,” said Art Hogan, chief market strategist at B Riley Wealth.
“The ECB and the UK are probably in the process of tightening, the US certainly has knocked on the door of completing the rate hike cycle and I think that has been driving some of the divergences.”
On Wall Street, the Dow Jones Industrial Average fell 108.94 points, or 0.32%, to 34,299.12, the Standard & Poor’s lost 16.24 points, or 0.37%, to 4,409.6 points, and the Nasdaq Composite Index fell 93.25 points, or 0.68%, to 13,689.57.
The pan-European STOXX 600 rose 0.5%, while Japan’s Nikkei rose 0.7% for its 10th consecutive week of gains.
In currency markets, the dollar index, which measures the US currency against a basket of currencies, rose 0.18%, with the euro declining 0.09% to $1.09.
However, the dollar is set to post its biggest weekly percentage drop since mid-January.
Meanwhile, the yen fell to its lowest level against the euro in 15 years after the Bank of Japan’s decision. The Japanese currency also fell 1.07% against the dollar at 141.84 per dollar, retreating to its lowest level in six months.
“The yen has a large negative yield gap against other G10 currencies,” said Vasily Serebryakov, foreign exchange analyst at UBS in New York.
US Treasury yields rose, with the 10-year benchmark yield rising after two straight days of declines as comments from Federal Reserve officials indicated the central bank was not done raising interest rates.
Fed Governor Christopher Waller said at an economic conference that core inflation “isn’t going to go down like I thought it would,” which could require further tightening.
The benchmark 10-year note rose 4 basis points to 3.77%, from 3.73% late Thursday.
Oil prices rose and posted weekly gains, as rising Chinese demand and OPEC+ supply cuts lifted prices.
And the price of US crude settled 1.6 percent, at $ 71.78 a barrel.
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