World stocks headed for weekly loss
Germany39;s 2year bond yield at highest since 2008
Dollar on backfoot

LONDON, Dec 16 Reuters World stocks were stuck near onemonth lows and government bond markets came under fresh selling pressure on Friday, a day after a slew of central banks jacked up interest rates and signalled that the fight to tame inflation was not over yet.

Interest rates went up in the euro area, Britain, Switzerland, Denmark, Norway, Mexico and Taiwan on Thursday, following a U.S. rate hike a day before, and central bankers vowed to keep raising rates to bring down prices.

This week39;s hawkish message from the likes of the European Central Bank and the Federal Reserve brought an abrupt end to optimism that peak rate is almost here.

European stock markets opened lower and U.S. stock futures were in the red , , pointing to more pain for Wall Street where major indices on Thursday suffered their biggest daily percentage drop in weeks.

In Asia, Japan39;s Nikkei index closed at its lowest in more than a month and MSCI39;s broadest index of AsiaPacific shares outside Japan was set for its worst week in two months.

All this left MSCI39;s world stock index languishing nears its lowest levels in almost a month.

Central banks delivered a blow to markets that were rebounding in anticipation of policymakers turning dovish on inflation and interest rates, said Sunil Krishnan, head of multiasset at Aviva Investors.

The ECB delivered a 50bps hike like the Fed….