World equity markets mostly fell on Friday after a broad global rally triggered by expectations that the Federal Reserve will hike interest rates this month.
Investors took their cash off the table in profit-taking after a mid-week surge fuelled by US President Donald Trump’s address to Congress, in which he promised massive infrastructure spending and tax cuts. But with Fed boss Janet Yellen due to speak Friday, the greenback was largely higher as experts said the bank was odds-on to tighten monetary policy in the face of an improving US economy.
“The week has been dominated by the incredible rise in US rate rise expectations,” said Joshua Mahony, market analyst at IG trading group. “There’s no doubt there is a chance we could see a US rate rise this month.” Comments from three top Fed officials have cemented those expectations. “The Fed rate hike balloon has successfully been floated,”.—AFP