Australia

Australian shares are set to open higher, after US benchmarks rose led by gains in consumer cyclical stocks.

ASX futures were up 0.6% or 49 points as of 8:00am on Thursday, suggesting a higher open.

All three major stock indexes closed at records after Federal Reserve officials largely sustained their outlook for delivering interest rate cuts this year.

The benchmark S&P 500 finished the day up 0.9%, with nine of its 11 sectors rising. The Dow Jones Industrial Average added 400 points, or 1%, while the tech-heavy Nasdaq Composite closed 1.3% higher.

In commodity markets, Brent crude oil was down 1.3% to US$86.23 a barrel, while gold was up 1.3% at US$2,185.86.

In local bond markets, the yield on Australian 2 Year government bonds was down at 3.80% while the 10 Year yield was also down at 4.05%. US Treasury notes were down, with the 2 Year yield at 4.60% and the 10 Year yield at 4.27%.

The Australian dollar hit 65.80 US cents up from its previous close of 65.29. The Wall Street Journal Dollar Index, which tracks the US dollar against 16 other currencies, was down at 98.22.

Asia

Chinese shares ended higher after the PBOC said the benchmark lending rates were held steady. The benchmark Shanghai Composite Index rose 0.55% to 3079.69, the Shenzhen Composite Index added 0.6% and the ChiNext Price Index gained 0.1%. Among major stocks, software companies advanced. 360 Security Technology rose 2.3% and iFlytek added 2.8%. The liquor sector fell, as Anhui Yingjia Distillery dropped 2.2% and Jiangsu King's Luck Brewery shed 1.1%.

Hong Kong's benchmark Hang Seng Index edged 0.1% higher to close at 16543.07 after swinging between mild gains and losses throughout the session. Focus is on the FOMC rate decision due later in the global day with the expectation that the Fed will keep rates unchanged, UOB's Global Economics & Markets Research team says in a note. Transport-related stocks led the gains with Li Auto rising 4.5% and Orient Overseas (International) closing 3.3% higher. Li Ning was up 5.7% higher. Qyuns Therapeutics added 23.7% following its initial public offer.

Japanese stocks ended higher, led by gains in real-estate stocks after the Bank of Japan ended negative interest rates, saying that a new era of stable inflation is in sight. Sumitomo Realty & Development gained 8.3% and Mitsui Fudosan climbed 5.4%. The Nikkei Stock Average rose 0.7% to 40003.60. The 10-year Japanese government bond yield fell 3 bps to 0.725%. Investors are focused on U.S. economic data and their policy implications. USD/JPY was at 150.42, compared with 149.15 as of Monday 5 p.m. Eastern Time.

Indian shares closed a tad higher as investors wait for the Fed's interest-rate decision later in the day. The benchmark Sensex was up 0.1% at 72101.69. Maruti Suzuki India led gains, rising 3.0%. Power Grid Corp. of India rose 2.2%. State Bank of India advanced 1.8%. Yes Bank ended 0.3% higher after selling certain stressed assets worth INR2.03 billion. Among top decliners, Tata Steel and Tata Motors were down 2.0% and 1.8%, respectively, while Axis Bank was 1.5% lower.

Europe

European shares were mostly little changed in closing trade, with the pan-European Stoxx Europe 600 at 505.33, on caution before a U.S. Federal Reserve announcement after European markets close. The Fed is expected to leave rates unchanged, though markets are wary it could reduce its forecast for rate cuts in 2024 following strong U.S. inflation data. "Equities are steady as traders prepare themselves for the Fed decision tonight," IG analysts say in a note. Germany's DAX rose 0.15% and the U.K.'s FTSE 100 was flat. France's CAC-40 dropped 0.5%, however, due to an 11.2% slide in Kering after it warned that Gucci's first-quarter sales would decline by nearly 20%. Other luxury stocks fell, with Burberry down 3.1%.

The FTSE 100 Index closed Wednesday flat at 7737 points in a trading day marked by softer U.K. inflation numbers for February as investors wait for the latest decision on the U.S. Fed rates tonight, AJ Bell investment director Russ Mould says in a note. "No move is expected so all the focus will be on any surrounding commentary and clues the market can draw about when the Fed will finally pivot to lower rates," he adds. Wealth-management business St. James's Place led the index top raisers, with shares up 4.5%, followed by Melrose Industries and Halma, up 4.1% and 3.85% respectively. Prudential and Burberry were the worst performers, with shares down 4.5 and 3.3%, amid concerns of a slowdown in China's market.

North America

All three major stock indexes closed at records after Federal Reserve officials largely sustained their outlook for delivering interest rate cuts this year.

The benchmark S&P 500 finished the day up 0.9%, with nine of its 11 sectors rising. The Dow Jones Industrial Average added 400 points, or 1%, while the tech-heavy Nasdaq Composite closed 1.3% higher.

Investors went into Wednesday afternoon on edge, worried that firmer-than-anticipated inflation could cause the central bank to dial-back its signaling about how many rate cuts were likely in 2024. Instead, most officials penciled in three cuts this year in new projections, the same as in December. The Fed left interest rates unchanged, as expected.

The last time all three indexes closed at a record on the same day was Nov. 8, 2021, according to Dow Jones Market Data.

"Part of it is relief that there's no disruption," said Brad McMillan, chief investment officer for Commonwealth Financial Network. "There is some validation by the Fed that the economy is strong enough that they don't need to cut."

Despite the Fed's projection for three rate cuts this year, McMillan said he doesn't expect the central bank will cut interest rates as long as employment remains steady and inflation is above its target of 2%.

In bond markets, the yield on the benchmark 10-year Treasury note fell to 4.271% after the Fed's decision, from 4.296% late Tuesday. Yields and prices move inversely.

Erik Knutzen, Neuberger Berman's multi-asset chief investment officer, said he's focusing his investments on the long term, expecting that interest rates will come down in the coming two or three years.

Knutzen said he's neutral on stocks and prefers Treasurys maturing in 10 years or fewer. He expects more factors to shift markets this year than in the recent past, creating more volatility and making short-term moves more difficult to predict.

"Each of the last three years there was a theme you could really latch on to," he said. "Now it's less clear."

Among individual stocks, shares of Chipotle rose 3.5% after the burrito maker announced a 50-for-1 stock split. Super Micro slipped 1.6% after completing a share offering. Shares of Paramount Global jumped 11.8% after private-equity firm Apollo Global Management made an $11 billion offer to buy the entertainment company's film and TV studio, The Wall Street Journal reported.

Small and midsize companies outperformed, with the Russell 2000 climbing 1.9%.