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US:

Stocks and government-bond yields sank after the Federal Reserve raised interest rates but signaled that further rate hikes might be limited.

Asia:

Asia-Pacific markets fell on Thursday, following Wall Street’s reaction overnight after the U.S. Federal Reserve hiked rates by another 25 basis points. Regional bank stocks in the U.S. also fell after Treasury Secretary Janet Yellen said officials are not considering a ‘blanket insurance’ for bank deposits.

India

Indian shares rose on Wednesday ahead of the US Federal Reserve rate decision, as concerns of a banking crisis eased further after the Credit Suisse rescue.

Market is expected to open on a flattish note and likely to witness sideways move during the day.

Global Economy:

The Federal Reserve on Wednesday raised interest rates by a quarter of a percentage point, but indicated it was on the verge of pausing further increases in borrowing costs amid recent turmoil in financial markets spurred by the collapse of two U.S. banks. The move set the U.S. central bank's benchmark overnight interest rate in the 4.75%-5.00% range, with updated projections showing 10 of 18 Fed policymakers still expect rates to rise another quarter of a percentage point by the end of this year, the same endpoint seen in the December projections. South Korea's financial firms have a low contagion risk from troubles at U.S. and Swiss banks, but some non-bank firms are facing increased stress from the sluggish property market, its central bank said in a report on Thursday. South Korean banks have low exposure to risky assets and have been under strict supervision, with the ratio of debt and equity securities standing at 18% of total assets, compared with 57% at the recently bankrupt Silicon Valley Bank.

Commodities:

Gold prices edged higher on Thursday after the U.S. Federal Reserve raised interest rates by an expected 25 basis points and signalled it was on the verge of pausing future hikes in view of recent turmoil in the financial sector. Oil prices fell on Thursday following three sessions of gains, after U.S. Federal Reserve Chair Jerome Powell re-stated his commitment to curbing inflation, including the possibility of more interest rate rises.

Currency:

The dollar was under pressure near seven-week lows on Thursday as U.S. bond yields fell sharply after the Federal Reserve sounded close to calling time on interest rate hikes.

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