The US central bank hiked federal funds rates by 25 basis points to 3.75–4 per cent. Additionally, Chair Kevin Warsh said in the post-policy conference that inflation remained too high and the financial conditions were restrictive. Although Warsh refrained from giving any forward guidance, traders read his comments as hawkish and started betting for another rate hike in October.
Meanwhile, in Hong Kong and mainland China, the Hang Seng and CSI 300 fell 1.42 per cent and 0.17 per cent, respectively.
Overnight, the Dow Jones Industrial Average and the S&P 500 fell 1.21 per cent and 0.45 per cent, respectively. The Nasdaq Composite settled 0.01 per cent lower.
The benchmark yield on the 10-year US Treasury note fell 3 basis points following the rate decision by the US Fed. It was trading at 4.99 per cent, compared to Wednesday’s close of 5.01 per cent.
Brent crude erased early losses as the initial reaction to Saudi Arabia’s announcement for extra supply of crude cargoes through Oman faded. The September futures were quoted at $105.83 per barrel on the Intercontinental Exchange.
Gold and silver futures fell 1.61 per cent and 1.51 per cent, respectively despite a rate hike.
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