Asian stock markets fell Friday while Europe opened higher after a Federal Reserve official suggested U.S. interest rates might have to be raised higher than expected to cool inflation.
London and Frankfurt advanced while Shanghai, Hong Kong and Tokyo declined. Wall Street futures were lower. Oil prices gained.
Wall Street’s benchmark S&P 500 index lost 0.3% on Thursday after a Fed official indicated the U.S. central bank might need to raise its key lending rate as high as almost double its already elevated level to rein in price increases. Officials warned previously that rates might stay high for an extended period, but traders hoped signs of slowing economic activity might cause the Fed to back off those plans.