Global shares fall on Fed rate hike, plunge in oil prices

Global shares fall on Fed rate hike, plunge in oil prices

According to information released Wednesday, the initial cap for Treasuries would be set at $6 billion per month initially and increase by $6 billion increments every three months over a 12-month period until it reached $30 billion per month in reductions to its holdings.

Later today, the Bank of England is expected to leave UK interest rates unchanged at historic lows of 0.25% on the basis that fast-rising UK inflation is being imported because of weaker sterling rather than signalling any overheating of the UK economy. A local expert says the USA rate hike could actually help Korea resolve its massive household debt problem, which topped a staggering 1.2-trillion US dollars in the first quarter. The blue-chip CSI300 index fell 0.2 percent while the Shanghai Composite Index added 0.1 percent.

Among stocks in London, retailers and housebuilders were leading declines, with Charles Church builder Persimmon down 6% or 133.5p to 2288.5p. US stock markets were relatively flat through afternoon trading, while the yields on 10-year Treasury notes had fallen to 2.11 percent.

Mulvaney said he hoped Yellen is right in maintaining that the move wouldn't restrict the Fed's ability to conduct monetary policy. Japan's benchmark slipped as the yen gained against the dollar. The rise represents the third hike in six months and pushes the key rate to levels not seen since 2008.

The U.S. Federal Reserved raised its short-term interest rates on Wednesday by one quarter of one percent.

The Fed said it expects United States inflation to be at 1.7 percent by the end of this year, down from the 1.9 percent previously forecast.

Supreme Court takes up Wisconsin gerrymandering
The federal court that struck down the districts adopted an equation that offers a way to measure the partisan nature of the districts.

The government reported yesterday that the Consumer Price Index, which is one measure of inflation, fell 0.1 percent in May from the month before.

Down Under, SPI futures were 1.34 percent lower at 5,805 compared to the S&P/ASX 200's Wednesday close of 5,883.904. Markets understood that the Fed's decision to hike the fed funds rate by 25 basis points (bps) to 1.25% and the reverse repo rate by 25 bps to 1.0% would not be based exclusively on the flow of economic data since the March and May Fed meetings. A neutral rate implies no negative effect on growth.

Europe's benchmark bond yield held near seven-week lows ahead of the Fed decision.

Weakening oil prices that may indicate commercial activity isn't strong enough to reduce a glut in energy products also hurts.

Brent crude, the global benchmark, was down 12 cents a barrel at $46.88. The euro dropped to $1.1160 from $1.1217.

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