Retail sales volumes in Britain declined by 1.4% between April and May, new figures showed, as the reopening of hospitality venues hit spending at food shops.
Asian shares extended losses for the week, U.S. Treasury yields climbed and the greenback hovered near two-month highs on Friday as investors digested comments from the U.S. Federal Reserve projecting rate hikes in 2023. While the Fed messaging indicated no clear end to supportive policy measures such as bond buying, signals of faster-than-expected rate hikes indicated its concern about inflation as the U.S. economy recovers from the COVID-19 pandemic. "What is pretty obvious is that the inflation genie is starting to sneak out of the bottle, and that will be a major driver of interest rates in the short to medium term," said James McGlew, executive director of corporate stockbroking at Argonaut in Perth.
Wall Street opened lower on Friday as investors reassessed their stance after the Federal Reserve projected interest rate hikes arriving sooner than once thought, while the dollar and U.S. Treasury yields continued to gain ground. The sell-off in the U.S. sharpened after St. Louis Federal Reserve President James Bullard told CNBC that inflation was more intense than expected.