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- England 96-1 after Salman's century lifts Pakistan to 556
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- Duo wins Physics Nobel for 'foundational' AI breakthroughs
- German 'Maddie' suspect could be free in 2025 after cleared of separate sex crimes
- China slaps provisional tariffs on EU brandy imports
- Ex-skipper Skelton eyes Wallabies November return
- Spanish great Iniesta leaves indelible legacy after retirement
- Indian Kashmir elects first regional government in a decade
- Hong Kong stocks crash, oil prices retreat on fading China boost
- Man City accuse Premier League of 'misleading' claims after legal case
- Duo wins Physics Nobel for key breakthroughs in AI
- Agha defies England as Pakistan post 515-8 in first Test
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- German 'Maddie' suspect could be free soon after cleared of separate sex crimes
- China says to take anti-dumping measures against EU brandy imports
- German suspect in 'Maddie' case cleared in separate sex crimes trial
- Israel expands offensive against Hezbollah in south Lebanon
- China stocks rally fizzles on stimulus worries amid Asia retreat
- Bangladesh's Yunus says no elections before reforms
Global markets mostly sink on Fed chief's remarks
Asian and European stocks mostly sank Friday on hawkish comments from the Federal Reserve about its monetary tightening plans, sending the dollar sharply higher against the euro.
Frankfurt stocks dived 1.9 percent and Paris slid 1.7 percent in early afternoon eurozone deals, as investors shrugged off a survey showing that the bloc's economic activity accelerated in April.
London shed 0.7 percent around midday with losses capped by the slumping pound that boosts share prices of multinationals.
Sterling slumped against the dollar after data showed tumbling retail sales as Britons face a cost-of-living crisis.
The pound briefly hit an October 2020 low as British Prime Minister Boris Johnson comes under renewed political pressure.
Oil prices slumped on demand fears arising from rising interest rates in the United States and ongoing Covid restrictions in China.
- 'Cat among pigeons' -
Markets remain shaken after Fed Chairman Jerome Powell exacerbated worries over higher US interest rates late on Thursday.
Powell, who has signalled that the Fed will have to move more aggressively to counter decades-high US inflation, stated that a half-point interest rate increase was "on the table" for next month's meeting, sending Wall Street tanking.
"Further hawkish comments from the Federal Reserve Chair put another cat among the pigeons in a day of violent swings," said Richard Hunter, head of markets at Interactive Investor.
"Quite apart from the widely expected 0.5 percent rate hike in May, this could also imply similar rises in subsequent months."
That stoked worries that the Fed could send the US economy's pandemic recovery back into reverse.
"While the news should not have come as too much of a surprise, investors rushed for the exit as concerns of over-tightening and recession came back into focus," said Hunter.
Sharp price rises are forcing major global central banks to hike interest rates, in turn curbing recovery from the pandemic.
Higher lending rates tend to weigh on companies' share prices as they increase interest repayments on loans, while also further reducing consumers' incomes.
In Asia on Friday, Tokyo stocks slid more than 1.5 percent even as inflation data from Japan was in line with market expectations.
But Shanghai finished marginally higher as some Chinese Covid curbs were eased and the nation's securities regulator pushed banks and insurers to buy more stocks to lift ailing equities.
- Key figures around 1045 GMT -
London - FTSE 100: DOWN 0.8 percent at 7,568.34 points
Paris - CAC 40: DOWN 1.7 percent at 6,600.20
Frankfurt - DAX: DOWN 1.9 percent at 14,228.81
EURO STOXX 50: DOWN 1.9 percent at 3,854.39
Tokyo - Nikkei 225: DOWN 1.6 percent at 27,105.26 (close)
Hong Kong - Hang Seng Index: DOWN 0.2 percent at 20,638.52 (close)
Shanghai - Composite: UP 0.2 percent at 3,086.92 (close)
New York - Dow: DOWN 1.1 percent at 34,792.76 (close)
Euro/dollar: DOWN at $1.0805 from $1.0834 late on Thursday
Dollar/yen: DOWN at 128.36 yen from 128.38 yen
Pound/dollar: DOWN at $1.2892 from $1.3030
Euro/pound: UP at 83.82 pence from 83.15 pence
Brent North Sea crude: DOWN 1.6 percent at $106.63 per barrel
West Texas Intermediate: DOWN 1.7 percent at $101.66 per barrel
burs-rfj/bcp/lth
O.Norris--AMWN