Global Markets Rattle Over Central Banks' Rate Decisions

Global stock markets experienced significant declines following the Federal Reserve's announcement of a tempered rate cut pace. Central banks worldwide, including Japan, England, Sweden, and Norway, responded variably, impacting currencies and yields. The Fed's cautious stance led to market volatility, affecting assets like oil, gold, and bitcoin.

Stock markets across the globe saw a downturn Thursday as the 10-year U.S. Treasury yield rose sharply, influenced by the Federal Reserve's decision to moderate the pace of rate cuts. This announcement set off a wave of activity among other central banks.

The Bank of Japan held its rates steady, which weakened the yen. Combined with the Fed's hawkish stance, the dollar surged against the yen and the euro. Meanwhile, the Bank of England maintained its interest rate, revealing internal divisions on how to address a slowing economy.

In Europe, Sweden cut rates while Norway held steady, further unsettling markets. The Fed's projections suggested fewer rate cuts and higher inflation, impacting bonds and causing fluctuations across various asset markets, including gold, oil, and bitcoin.

(With inputs from agencies.)