Market Waves: The Dollar Surge and Global Equities Under Strain

Global markets were affected by a strong dollar and rising U.S. Treasury yields, as Asian and European equities struggled. Despite central bank policy shifts in Asia, investors remain concerned about economic tensions, particularly between China and the U.S. The Fed is expected to maintain rates, affecting currency markets globally.

Global markets faced turbulence on Friday as the dollar's robust performance strained investor sentiment. Asian shares dropped sharply, with Treasury yields on track for their steepest weekly rise in a year due to fading hopes of U.S. rate cuts in 2025. Economic measures from Beijing failed to buoy Chinese stocks.

European markets braced for a lower opening following a decline in the EUROSTOXX 50 futures, despite a slight rise in Nasdaq futures after Wall Street's retreat from record highs. Central banks in Switzerland, Canada, and the European Central Bank implemented rate cuts, inadvertently bolstering the U.S. dollar.

The dollar's strength is placing pressure on emerging market currencies. Central banks in Indonesia and India are intervening to support their currencies amidst dwindling values. Long-term Treasury yields continue to rise, with confidence still leaning towards a Federal Reserve rate cut next week.

(With inputs from agencies.)