GLOBAL MARKETS — Global shares edge higher as central banks double down on inflation fight

(Recasts with US market close, adds oil settlement. 25%, highest level in 31 years Dollar rises against yen after two BOJ board members dissent Brent crude settles lower, gold gains By Amanda Cooper and Chibuike Oguh NEW YORK/LONDON, Sept 18 (Reuters) — An index of global equity markets edged higher on Friday, as losses in Europe were partly offset by late gains on Wall Street, with markets ending a turbulent week marked by a global push by central banks to quell inflation. The benchmark S&P 500 and the Nasdaq finished higher after reversing losses in early trade. The Dow ended down.

Materials, utilities and real estate stocks led declines while technology and industrials drove gains. The S&P 500 and the Dow notched weekly losses, while the Nasdaq posted a weekly gain. 40%. 1% and posted a weekly loss.

07% and posted a weekly loss. Monetary policy has been the prime focus this week, as the war in the Middle East nears the seven-month mark with few signs of ending, which is keeping oil prices above $100 per barrel and fanning inflation fears. That has also led to a rise in yields across major government bond markets. "The market is coming to the realization of a higher interest-rate environment on a go-forward basis," said Kieran Osborne, chief investment officer at Mission Wealth.

"The Fed clearly indicated that they're likely to raise rates one more time and then central banks globally are sort of on the path to try to rein in inflation. 25%. The decision, though expected, excited yen bears with two board members dissenting to the hike. 76 per dollar.

8% so far this month, driven by expectations of a faster pace of hikes from the BOJ and early signs of repatriation from Japanese investors. The BOJ decision wraps up the series of major central bank meetings in which policymakers have ratcheted up hawkish rhetoric. The Federal Reserve raised rates for the first time in three years on Wednesday and switched to a more aggressive stance on inflation, which knocked the yen, putting it on course for its worst weekly performance against the dollar in two years, down 2%. The Bank of England on Thursday left UK rates unchanged but said it may have to hike if the Iran war drags on.

The European Central Bank last week also flagged the need for further tightening as it raised rates. And Australia's top central banker on Friday said some of the upside risks to inflation flagged by policymakers appeared to be materialising. 1488. 19.

87 following a Reuters report that China has asked Tehran to help rein in the Houthis after their military blitz over the past week. That, together with hopes Gulf exporters may find alternative routes to ship oil, put crude futures on course for a weekly decline. Bond yields edged up after another brutal selloff this week that took the 10-year US Treasury yield beyond 5% to its highest level since 2007. 73 basis points at 5%.

Yields across the euro zone and in Britain have also hit multi-year highs in the last week, but by Friday were only a touch lower. 59 an ounce. com;)