Technology selloff and an interest rate rise: Markets paused for breath this week, led by a sell-off in technology stocks which had hit a record high last week. Markets remained focused on central banks with a flurry of interest rate decisions announced, the most significant from the US Federal Reserve (Fed) which raised interest rates by 0.25%, taking interest rates to 1.25%. This was despite softness in recent inflation and jobs data. Perhaps more significantly, the Fed continued to flag one further rate rise for this year and plans to scale back its balance sheet.
Markets have been relatively subdued this week, despite a convincing win by Emmanuel Macron in the French Presidential election, with investors having widely anticipated the result and positioned themselves accordingly.