Reaction: Pound slides as UK rate hike prospect dims

NEW YORK: Worries about higher US interest rates and Apple’s prospects weighed on Wall Street equities Friday, while the British pound retreated following dovish comments from the head of the Bank of England. US stocks ended decisively lower as the yield on the 10-year US Treasury rose ever closer to 3.0%, reigniting fears that Federal Reserve interest rate increases will dent the economy. Adding to the angst were a series of pessimistic analyst reports on Apple expressing doubts about iPhone sales. Apple, the biggest company by market capitalisation, tumbled 4.1%, weighing especially hard on the tech-rich Nasdaq, which finished 1.3% lower. Equity markets elsewhere were mixed, with Paris edging higher and Frankfurt and Tokyo notching modest declines. London’s FTSE 100 rose 0.5% after the British pound suffered another drop on dimming expectations the Bank of England will hike interest rates following remarks from Governor Mark Carney.  

Published in The Express Tribune, April 22^nd, 2018.

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