Sensex slips over 200 points after US Fed signals more rate hikes; SBI, Adani Ports top losers
Asian shares down on Fed hike, Sino-US trade anxiety
Asian shares edged down on Thursday after the Federal Reserve raised interest rates and took a more hawkish tone in forecasting a slightly faster pace of tightening for the rest of the year, while concerns about U.S.-China trade frictions kept investors on edge.
MSCI's broadest index of Asia-Pacific shares outside Japan lost 0.25 percent in early trade. South Korea's KOSPI .KS11 was off 0.9 percent, while Australia's market slipped 0.2 percent. Japan's Nikkei .N225 shed 0.7 percent.
The Federal Reserve raised interest rates on Wednesday, a move that was widely expected but still marked a milestone in the U.S. central bank’s shift from policies used to battle the 2007-2009 financial crisis and recession.
In raising its benchmark overnight lending rate a quarter of a percentage point to a range of 1.75 percent to 2 percent, the Fed dropped its pledge to keep rates low enough to stimulate the economy “for some time” and signaled it would tolerate inflation above its 2 percent target at least through 2020.
“The economy is doing very well,” Fed Chairman Jerome Powell said in a press conference after the rate-setting Federal Open Market Committee released its unanimous policy statement after the end of a two-day meeting.
- The govt planning to sell a portion of its 89.9% stake in company
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Markets On Wednesday
Broadly negative global markets ahead of the US Federal Reserve's rate setting meet and profit booking led the key domestic equity indices to close on a flat-to-positive note on Wednesday.
According to market analysts, domestic indices rose during the day's trade on the back of higher April industrial production. However a late hour burst of profit booking eroded most of their gains.
Besides, the day's trade saw healthy buying in IT, consumer durables and banking counters, whereas heavy selling prevailed in capital goods, metal and FMCG stocks.
The broader Nifty50 of the National Stock Exchange (NSE) closed at 10,856.70 points -- inching-up by 13.85 points or 0.13 per cent -- from its previous close of 10,842.85 points.