Major benchmarks fell as U.S. inflation data exceeded forecasts and geopolitical risks weighed on investor sentiment.
Global stock indexes closed lower for the week as cautious investor sentiment prevailed amid escalating geopolitical risks and inflation concerns. A hotter-than-expected U.S. inflation report dampened Wall Street trends, contributing to the decline.
Prior to the release, markets had anticipated softer inflation data, which could have supported a more dovish Federal Reserve stance. The latest figures contrasted with recent disinflationary trends, raising concerns over prolonged monetary policy tightening.
Tensions between China and the U.S. also flared after Xi Jinping issued warnings over Taiwan during a summit with Donald Trump, adding to market uncertainty.