Global stocks mixed as yen falls despite Bank of Japan rate hike
Analyst Angelo Kourkafas said “we have some relief that the Fed credibility is still in place,” but added that high yields and geopolitical uncertainty remain concerns.
On Friday, September 18, global stocks experienced a mixed day as central bank actions aimed at curbing inflation took center stage. The Bank of Japan hiked interest rates to a three-decade high, yet the yen fell against the dollar due to concerns about the pace of rate hikes. Analysts attributed Wall Street's mixed finish to investors' optimism about the Federal Reserve's commitment to fighting inflation, despite rising yields.
The Dow Jones Industrial Average ended slightly lower, while the Nasdaq index slightly increased. In Europe, major stock exchanges saw declines of around 1.5 percent. Higher yields offered an attractive alternative to stocks, but investors remained cautious about potential further rate hikes. The yen's decline was also influenced by geopolitical tensions in the Middle East, which continue to exert upward pressure on oil prices.
Written by urgent.news from Channel News Asia's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
