The latest Federal Reserve meeting saw the central bank lift rates by 0.25% as expected, putting a temporary stop to risk spirits on Wall Street while European shares slumped as Euro rebounded on expectations that the ECB will follow suit tonight. The USD moderated its recent gains with a reversion as the Australian dollar kept oscillating around the point of control created with yeserday’s CPI print at the mid 67 cent level.
US bond markets saw a small drop across the yield curve as Fed Chair Powell noted that rates could stick here for awhile, with the 10 year falling back to the 3.85% level while oil prices held on to their recent gains with Brent staying just above the $83USD per barrel level. Gold spiked on the rate hike but came back slightly with a small uptrend holding above the $1970USD per ounce level.
Looking at share markets in Asia from yesterday’s session with mainland Chinese share markets are down mid-afternoon with the Shanghai Composite looking to finish some 0.3% lower at 3226 points while in Hong Kong the Hang Seng Index has pulled back slightly after its epic 4% rise in the previous session, down 0.3% to 19365 points.
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