In Asian Equity Markets stocks fell sharply on Thursday after the U.S. Federal Reserve hiked interest rates and vowed to tighten monetary policy aggressively to curb rampant inflation. Hong Kong’s Hang Seng index lost 2.1 percent, while the Taiwan Weighted index shed 1.1 percent. South Korea’s KOSPI also fell by nearly 1 percent. Japan’s Nikkei 225 index fell 0.6 percent, even as the Bank of Japan held interest rates at ultra-low levels and maintained its dovish outlook. Indonesian stocks were among the few outliers for the day, rising 0.2 percent ahead of a central bank meeting later today.

In Currency Markets the dollar rose to a fresh two-decade high and stocks slid on Thursday with investors unsettled by the Federal Reserve’s aggressive outlook for U.S. interest rates and braced for more hikes across Europe later in the day. Sterling hit a 37-year low of $1.1221. The euro fell to $0.9810. The Australian and New Zealand dollars were pinned near their lowest since mid-2020, with the Aussie down 0.5 percent on Thursday at $0.6602 and the kiwi down 0.4 percent at $0.5832.

In US Equity Markets main indexes see-sawed before falling in the final 30 minutes of trading to end Wednesday lower, as investors digested another supersized Federal Reserve hike and its commitment to keep up increases into 2023 to fight inflation. The Dow fell 1.7 percent, to 30,183.78, the S&P 500 lost 1.71 percent, to 3,789.93 and the Nasdaq Composite fell 1.79 percent, to 11,220.19. All 11 S&P sectors finished lower, led by declines of more than 2.3 percent by Consumer Discretionary and Communication Services.

In Commodities Markets oil prices fell about 1 percent to a near two-week low in volatile trade on Wednesday after the U.S. Fed delivered another hefty rate hike to quell inflation that could reduce economic activity and demand for oil. Brent crude futures settled 0.9 percent, lower at $89.83 a barrel, its lowest close since Sept. 8, while U.S. WTI crude fell 1.2 percent, to $82.94, its lowest close since Sept. 7. Spot gold was 0.7 percent higher at $1,673.86 per ounce. Spot silver gained 1.4 percent to $19.57 per ounce. Platinum lost 1.6 percent to $907.79 and palladium fell 1.1 percent to $2,143.82.

In European Equity Markets stocks ended higher on Wednesday ahead of the U.S. Federal Reserve’s likely third straight jumbo-sized interest rate hike later in the day. The continent-wide STOXX 600 index ended 0.9 percent higher, bouncing back after hitting its lowest level since early July earlier in the day after Russian President Vladimir Putin also accused the West of “nuclear blackmail” over the war in Ukraine. Gains in defence stocks also offered support, with Rheinmetall, Leonardo, Thales and BAE Systems up between 4.0 percent and 9.3 percent.

In Bond Markets the U.S. bond yield curve inverted further on Wednesday after the Federal Reserve hiked rates by 75 basis points and signaled more increases to come, adding to fears about an economic downturn. Two-year Treasury yields were last 4.059 percent, after earlier reaching 4.123 percent, the highest since October 2007. Benchmark 10-year U.S. Treasury yields were 3.534 percent, after earlier hitting 3.640 percent, the highest since February 2011.