Australia

Australian shares are set to slide after Wall Street closed lower on Fed intentions.

ASX futures were down 0.3% or 22 points as of 8:00am on Thursday, suggesting a lower open.

US stocks slid after the Fed officials hold interest rates steady at a 22-year high, but signaled they are prepared to raise rates once more this year to fight inflation.

Big technology companies lead the declines as investors now see the interest rates remaining higher for longer.

More defensive sectors including real estate and utilities post small gains, while Treasury yields and the dollar strengthen following the Fed announcement.

Major averages were mixed during Powell's press conference, but end broadly lower. DJIA fell 76 points to 34440, the S&P 500 lost 0.9% to 4402 and the Nasdaq dropped 1.5% to 13469.

In commodity markets, Brent crude oil slipped 0.9% to US$93.53 a barrel while gold was flat at US$1,930.88.

In local bond markets, the yield on Australian 2 Year government bonds was up at 3.96% while the 10 Year yield was also up at 4.21%. US Treasury notes were higher, with the 2 Year yield at 5.18% and the 10 Year yield at 4.41%.

The Australian dollar rose to 64.47 US cents from its previous close of 64.46 US cents. The Wall Street Journal Dollar Index, which tracks the US dollar against 16 other currencies, was flat at 99.30.

Asia

Chinese shares ended lower, with investor sentiment weighed after the central bank kept its benchmark lending rates unchanged and amid concerns over economic growth. "The PBOC's hold today highlights the dilemma that the central bank keeps struggling with: to save the economy or save the yuan," said Hebe Chen, an analyst at IG International. Losses were broad-based, with consumer brands and chip makers leading losers. BTG Hotels dropped 2.7% and Naura Technology Group retreated 2.5%. The benchmark Shanghai Composite Index closed 0.5% lower at 3108.57. The Shenzhen Composite Index fell 0.6% and the tech-heavy ChiNext Price Index declined 0.8%.

Hong Kong shares fell as investors adopted a cautious mood ahead of the outcome of the FOMC's meeting later in the day. No change to the Fed's policy stance is likely, but the U.S. central bank will probably keep the door open for another rate increase, ING economists write in a research report. Tech stocks led losses, with Sunny Optical Technology declining 5.5% and Meituan falling 2.1%. Meanwhile, Orient Overseas rose 2.8% and ENN Energy increased 1.8%. The benchmark Hang Seng Index closed 0.6% lower at 17885.60, while the Hang Seng Tech Index closed 1.6% lower at 3921.83.

Japanese stocks ended broadly lower, dragged by sharp falls in game and auto stocks, amid growing caution over the scope of the Fed's tightening. Nintendo dropped 2.9% and Nissan Motor shedded 2.9%. The Nikkei Stock Average fell 0.7% to 33023.78. The Fed's rate decision due later in the day will be in focus. The 10-year Japanese government bond yield rises half basis point to 0.720%.

Indian shares ended lower, extending morning losses, dragged by falls in bank and industrial stocks as caution over the scope of the Fed's tightening weighs on markets across Asia. HDFC Bank fell 4.0% andIndusInd Bank was 1.1% lower. Maruti Suzuki India dropped 1.65% and Tech Mahindra declined 1.2%. Focus was on the U.S. central bank rate's decision due later in the day. Investors expect the Fed to hold interest rates steady, while debating what it would take to lift borrowing costs again this year. The benchmark Sensex was down 1.2% at 66,800.84.

Europe

European stocks ended higher, with the Stoxx Europe 600 up 0.9% at 460.66, as investors anticipated that the U.S. Federal Reserve will leave interest rates on hold at 1800 GMT while lower oil prices help lift sentiment. "The steady beat of rising oil prices has been interrupted today, providing stocks around the globe with some much-needed breathing space," writes IG analyst Chris Beauchamp. Weaker-than-expected U.K. inflation data raised hopes that if the Bank of England raises rates on Thursday as expected this could mark its final hike. However, the mood could be dampened if the Fed warns rates could rise further, Beauchamp says. Germany's DAX and France's CAC 40 close up 0.7%.

The FTSE 100 rose 0.6% to 7702.02, led by property stocks after data showed headline annual U.K. CPI inflation fell to 6.7% in August, below forecasts of 7.0% in a WSJ poll. Though the Bank of England is still likely to raise rates on Thursday it could be reticent to signal further increases. "The odds of a rate hike by the BOE tomorrow are still high, but policymakers may signal that they believe this could be the last hike," says Richard Flax, chief investment officer at Moneyfarm, in a note. Among property stocks, Taylor Wimpey rose 4.6% while Barratt Developments and Berkeley rose 3.9% and 3.1% respectively. Oil giants BP and Shell fell 1.5% as oil prices turn lower.

North America

US stocks slid after the Fed officials hold interest rates steady at a 22-year high, but signaled they are prepared to raise rates once more this year to fight inflation.

Big technology companies lead the declines as investors now see the interest rates remaining higher for longer.

More defensive sectors including real estate and utilities post small gains, while Treasury yields and the dollar strengthen following the Fed announcement.

Major averages were mixed during Powell's press conference, but end broadly lower. DJIA fell 76 points to 34440, the S&P 500 lost 0.9% to 4402 and the Nasdaq dropped 1.5% to 13469.