Markets show little reaction to rate increase

Global shares fall on Fed rate hike, plunge in oil prices

Global shares fall on Fed rate hike, plunge in oil prices

The most interesting thing about this meeting is that it comes at a time when the Dollars has endured a less than stellar jobs report (some decried it as disastrous, ) and with inflation possibly slowing as forecasts for last month's CPI see it dipping from 2.2% back to 2.0%.

The Thomson Reuters/HKEX Global CNH index, which tracks the offshore yuan against a basket of currencies on a daily basis, stood at 94.24, weaker than the previous day's 94.26.

The U.S. Federal Reserve, acting as America's central bank, took another step towards normalising monetary policy, by increasing interest rates to a 1% to 1.25% range.

The interest rate hike "reflects the progress the economy has made and is expected to make toward maximum employment and price stability", Yellen told reporters Wednesday, pointing to job gains and moderate rises in economic activity.

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The senior Republican suffered extensive injuries and was in critical condition on Wednesday night. The shooter, identified as James Hodgkinson, 66, of IL , was shot and killed by law enforcement.

She once again said the path of interest rates "is not a pre-set course", but the Fed's quarterly projections show they still anticipate making a third rate increase this year, with the median federal funds rate ending 2017 at 1.4 per cent.

Against its Japanese counterpart, the dollar shrugged off earlier losses and was flat at 109.54 yen, above Wednesday's eight-week low of 108.81 yen. The euro edged up to $1.1219 from $1.1217. They fell as low as 2.103 percent following the downbeat data, their lowest since November 10.

Since the financial crisis as the Fed has bought government and mortgage-backed bonds to underpin the American economy, but policymakers have confirmed that they will start to reduce reinvesment of bonds as they mature. Fed Chair Janet Yellen said this process could begin "relatively soon".

Analysts said the rate hike was fully expected, but the central bank's more hawkish tone was somewhat surprising.

Van rams into crowd outside London mosque; 1 dead, several injured
The Metropolitan Police earlier declared the collision as a "major incident" and said that there were "a number of casualties". A pedestrian was killed after a man in a white van drove into worshippers and then shouted, "I'm going to kill all Muslims" .

The Fed said it expects United States inflation to be at 1.7 percent by the end of this year, down from the 1.9 percent previously forecast.

The implementation of its proposed balance sheet normalisation programme – a gradual reduction in Fed's holding of securities - this year, would also depend on how the economy evolves, it added.

The Federal Reserve is also likely to raise rates at least one more time this year, unless something unexpected happens to the economy (such as a blowup this year over the debt ceiling).

Expressing confidence that the USA economy is recovering, the Federal Reserve said America's labour market has "continued to strengthen" and economic activity has been "rising moderately" so far this year. The rest said the Fed would make such a move later by its December 12-13 meeting. In a separate report from the Labor Department's, Consumer Price Index declined 0.1 percent in May.

LeBron James denies Draymond Green's remark that Cavs star 'started the superteam'
Draymond Green waves at fans during a parade and rally to celebrate the Warriors' NBA championship on Thursday. Draymond Green had already dropped the mic at the Golden State Warriors' latest championship parade.

Underlying trends in the dollar and bond yields will dominate in the short term, although a very sharp slide in equity markets would tend to underpin gold, especially if President Trump comes under renewed pressure.

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