World shares mostly advance after Wall Street slips following Fed's rate
hike decision
[September 17, 2026] By
CHAN HO-HIM
HONG KONG (AP) — World shares mostly advanced on Thursday despite Wall
Street closed lower following the Federal Reserve’s interest rate hike
decision for the first time in three years.
The quarter of a percentage point increase brings the Fed’s key rate to
a target range of 3.75%-4.00%, as it attempts to control U.S. inflation
that’s been stubbornly above its target.
U.S. futures were higher. The futures for the S&P 500 climbed 0.8%,
while that for the Dow Jones Industrial Average gained 0.7%.
In early European trading, Britain's FTSE 100 rose 0.5% to 10,739.72.
France's CAC 40 advanced 0.3% to 8,163.52, while Germany's DAX climbed
0.6% to 25,694.84.
In Asia, Japan’s Nikkei 225 index gained 0.3% at 64,136.25. South
Korea’s Kospi edged down less than 0.1% to 6,715.41. The Hong Kong Hang
Seng fell 0.4% to 24,604.29, while the Shanghai Composite index lost
0.4% to 3,875.60.
Australia’s S&P/ASX 200 climbed 0.4% to 8,732.40.
Taiwan’s Taiex jumped 1%, while India’s Sensex edged up 0.1%.
On Wednesday, Wall Street’s benchmark S&P 500 dropped 0.5%. The Dow
Jones Industrial Average fell 1.2%, and the technology-heavy Nasdaq
composite was mostly unchanged.
Market reactions were “pretty much expected since the rate rise was also
in line with market expectation,” said Lorraine Tan, director of equity
research for Asia at Morningstar on Thursday, adding that the ongoing
Iran war is likely to keep pressure on inflation.
[to top of second column] |
Currency traders work at the foreign exchange dealing room of the
Hana Bank headquarters in Seoul, South Korea, Thursday, Sept. 17,
2026. (AP Photo/Ahn Young-joon)
 Following the Fed’s announcements,
the two-year U.S. Treasury yield rose to 4.71% early Thursday
compared to around 4.67% late Tuesday. The yield on the 10-year
Treasury remained at near 5.00% at an elevated level.
Government bond yields have remained higher since the war as the
war-driven energy shock adds to inflationary pressure while
investors also worry about growing U.S. national debt.
The U.S. dollar fell early Thursday to 155.62 Japanese yen from
156.26 yen. The euro was trading at $1.1474, up from $1.1465.
Oil prices fell. There are still limited oil flows in the Strait of
Hormuz, the narrow waterway crucial for global oil transport, and as
Saudi Arabia’s closure of a key oil pipeline adds to oil supply
pressure as it moves to repair the pipeline.
Brent crude, the international standard, traded 1.2% lower at
$104.60 a barrel early Thursday, but still well above the around $72
per barrel in late February before the war.
All contents © copyright 2026 Associated Press. All rights reserved |
