In Asian Equity Markets stocks fell on Thursday after the U.S. Federal Reserve shifted the outlook on tightening from short and sharp to long and high, putting to rest any thought of a near-term pause. MSCI’s broadest index of Asia-Pacific shares outside Japan shed 1.7 percent, with South Korea down 0.3 percent. Japan’s Nikkei was closed for a holiday, but futures were trading around 300 points below Wednesday’s cash close. Chinese blue chips eased 1.2 percent after a survey of the service sector showed activity contracted due to COVID-19 restrictions with the Caixin PMI falling to 48.4.

In Currency Markets the U.S. dollar eased slightly on Thursday as investors digested the possibility that Fed may raise interest rates further than expected, while sterling edged higher ahead of the Bank of England policy meeting. The U.S. dollar index fell 0.214 percent at 111.880, coming off a session high of 112.19, its highest in seven sessions. The pound was last trading at $1.1412, up 0.20 percent on the day ahead of the Bank of England meeting. Japan’s yen remained notably firm and has held at 147.24 per dollar as traders continue to watch for any more official interventions for the battered currency.

In US Equity Markets stocks fell on Wednesday, as comments from Fed Chair Jerome Powell shattered initial optimism over a Fed policy statement that raised interest rates by 75 basis points but signaled that smaller rate hikes may be on the horizon. The Dow fell 1.55 percent, to 32,147.76, the S&P 500 lost 2.50 percent, to 3,759.69 and the Nasdaq Composite fell 3.36 percent, to 10,524.80. In a volatile trading session, equities initially moved higher in the wake of the hike by the Fed, the fourth straight increase from the central bank of that magnitude as it attempts to bring down stubbornly high inflation.

In Commodities Markets oil prices rose on Wednesday, gaining ground even as other risk assets fell following the Federal Reserve’s fourth interest rate hike of the year. Brent crude settled up 1.6 percent, to $96.16 while U.S. West Texas Intermediate (WTI) crude settled up 1.8 percent, to $90 on the nose. Spot gold fell 0.5 percent to $1,640.05 per ounce. Elsewhere, spot silver fell 1.6 percent to $19.3 per ounce, after climbing to a three-week peak on Tuesday. Platinum lost 0.7 percent to $936.28, while palladium fell 1.3 percent to $1,856.50.

In European Equity Markets stocks gave up early gains and closed lower on Wednesday as investors exercised some caution ahead of the U.S. Federal Reserve’s interest rate hike decision later in the day. The pan-European STOXX 600 index fell 0.3 percent to snap a three-day winning run that took it to near seven-week highs. Personal & household goods, miners and technology sectors in Europe were among the worst hit, down between 1.3 percent and 1.8 percent. Bucking the trend was the healthcare sector, boosted by a 7.4 percent jump in Novo Nordisk after it raised its full-year earnings outlook.

In Bond Markets U.S. Treasury yields rose in volatile trading after a brief fall on Wednesday after Federal Reserve Chair Jerome Powell struck a still hawkish tone in his comments, cautioning against prematurely discussing a pause in hiking rates in the face of persistently high inflation. U.S. 10-year yields were 4 bps higher on the day at 4.09 percent after their initial steep decline. U.S. two-year yields, which reflect rate expectations, were up 6.6 bps at 4.603 percent.