Australia

Australian shares are set to open higher, after Wall Street jumped following the Fed signalling rate cuts in 2024.

ASX futures were down 1.1% or 79 points as of 8:30am on Thursday, suggesting a higher open.

U.S. stocks rose after the Fed held rates steady as expected and projects rate cuts in 2024. The Dow posts its first record close since January 2022, the first of the three major averages to close at a record high since the Fed started raising interest rates.

DJIA gained 512 points, or 1.4%, to 37090, the S&P 500 rose 1.4% to 4707 and the Nasdaq climbed 1.4% to 14733.

In commodity markets, Brent crude oil rose 1.7% to US$74.49 a barrel while gold was up 2.1% to US$2,020.82.

In local bond markets, the yield on Australian 2 Year government bonds was down at 4.02% while the 10 Year yield was also down at 4.28%. US Treasury notes were down, with the 2 Year yield at 4.45% and the 10 Year yield at 4.02%.

The Australian dollar hit 65.66 US cents down from the previous close of 65.57. The Wall Street Journal Dollar Index, which tracks the US dollar against 16 other currencies, was down at 97.26.

Asia

Chinese shares closed lower, with losses deepening in the afternoon session after an annual economic work conference ended without announcing any new major stimulus to boost growth. Beijing will likely resort to the usual measures to rescue the property market and address local government debt, Hang Seng Bank chief economist Dan Wang says. Beverage and food stocks led declines. Shanxi Xinghuacun Fen Wine Factory dropped 3.7% and Kweichow Moutai lost 2.9%. Foshan Haitian Flavouring & Food shed 4.3%. The medical and pharmaceutical sectors led gains, with Chongqing Taiji Industry climbing 4.0% and Tasly Pharmaceutical adding 1.5%. The benchmark Shanghai Composite Index ended 1.15% lower at 2968.76 and the Shenzhen Composite Index fell 1.2% to 1845.43. The ChiNext Price Index declined 1.7%.

Hong Kong shares closed lower as the lack of major stimulus from China's annual economic work conference damped sentiment. Investors unwound earlier bullish bets as the lack of new measures suggests that the fragile growth outlook for China could remain for longer, IG market strategist Jun Rong Yeap said. Investors are also waiting for the Fed's rate decision later today. Consumer and property sectors led losses, with Xinyi Glass and Tingyi (Cayman Islands) down 5.7% and 3.9%, respectively. Wharf Real Estate Investment dropped 4.8% and China Hongqiao Group lost 3.45%. Meanwhile, select tech stocks led gains, with Xiaomi up 2.5% and NetEase gaining 1.7%. The benchmark Hang Seng Index was down 0.9% at 16228.75, while the Hang Seng Tech Index fell 1.2% to 3686.21.

Japan's Nikkei Stock Average rose 0.25% to close at 32926.35, tracking Wall Street's gains overnight. With tonight's FOMC decision looming, a refreshed "dot plot" and revisions to the Summary of Economic Projections will provide ample fodder for market interpretation, says Vishnu Varathan, head of economics & strategy, Asia and Oceania Treasury Department, at Mizuho Bank, in an email. Among best performers on the benchmark index, Disco Corp. climbed 9.9%, Advantest rose 5.6% and Tokyo Electron was up 4.7%. USD/JPY was at 145.55, compared with 145.40 as of Tuesday's Tokyo stock-market close. The 10-year JGB yield was down 5 bps at 0.685%.

Indian shares were little changed, as declines in tech companies and the finance sector were offset by gains in energy stocks. Investors are waiting for the U.S. Federal Reserve's decision on interest rates, Saxo's APAC strategy team says in a research note. Tata Consultancy Services fell 2.1% and Infosys dropped 1.8%. Axis Bank lost 1.4% and Bajaj Finserv shed 1.3%. NTPC led gains with a 3.7% rise. Power Grid Corp. of India added 2.3%. The benchmark Sensex closed flat at 69584.60.

Europe

European stocks traded mixed after a UK economic-growth slowdown. The Stoxx Europe 600 traded flat and the DAX and CAC 40 fell 0.1%, though the FTSE 100 advanced 0.1% as the sterling dropped after UK GDP fell by a worse-than-expected 0.3% in October. Oil stocks traded mixed as Brent crude rose 1.7% to $74.49 a barrel. The UK GDP data showed a widespread economic slowdown, with services, construction and manufacturing all falling, Janus Henderson Investors says. "This loss of momentum after modest growth in September is clearly disappointing and will likely lead to downgrading of UK GDP growth for 4Q and 2024," Janus Henderson portfolio manager Andrew Jones writes.

FTSE 100 edged higher, by 0.1% at 7.548,44 points, outperforming other European markets, helped by another strong session from AstraZeneca as it continues to build on the gains from yesterday's acquisition of Icosavax. Betting company Entain was today's top gainer after announcing its Chief Executive Jette Nygaard-Andersen is stepping down with immediate effect. "It's been a cautious session for markets in Europe today with little in the way of direction ahead of tonight's U.S. Federal Reserve rate decision, and tomorrow's Bank of England and ECB rate decisions," CMC Markets UK analyst Michael Hewson says in a comment.

North America

U.S. stocks rose after the Fed held rates steady as expected and projects rate cuts in 2024. The Dow posts its first record close since January 2022, the first of the three major averages to close at a record high since the Fed started raising interest rates.

DJIA gained 512 points, or 1.4%, to 37090, the S&P 500 rose 1.4% to 4707 and the Nasdaq climbed 1.4% to 14733.

All S&P 500 sectors are higher, led by rate sensitive industries including real estate and utilities.

The dollar fell along with Treasury yields following the Fed decision, while gold and oil ended higher.