ASX futures 1.62% at 6978 at 7am live Thursday morning.

United States stocks slipped modestly ahead of an announcement from the Federal Reserve that the central bank would raise interest rates for the fourth time this year by 0.75. The major US indexes reversed course and moved higher after the announcement as investors read the Federal Reserve’s official statement as a sign that it expected fewer rate increases. That fleeting ray of hope evaporated just as quickly as Federal Reserve Chairman Jerome Powell made clear that interpretation was a mistaken one.

The S&P 500 dropped 96.41 points, or 2.50 percent, to 3,759.69. The Nasdaq Composite did the same with a decrease of 366.05 points or 3.36 percent to 10,524.80.

On commodity markets, Brent crude oil rose 0.99% to US$95.59 a barrel, while gold lost 0.80% to US$1,635.66.

The Australian 2-year bond yield is at 3.37 and the 10-year at 3.90. On other shores, yield on 2-year US Treasury notes lifted to 4.62% while yield on 10-year US Treasury notes edged to 4.10%.

The Australian dollar was lower at 63.59 US cents in late trade, compared to the previous close of 63.95.

Asia

Chinese equities supported the advance of yesterday, as the Shanghai’s Composite Index added 1.15% and Hong Kong’s Hang Seng Index posted a gain of 2.41%. In Japan, the Nikkei Stock Average lost 0.06 percent, to 27,663.

Europe

European stocks slide, with the French CAC 40 falling 0.81% and the German DAX down 0.61%. The FTSE 100 Index fell 0.58%.

North America

The S&P 500 dropped 96.41 points, or 2.50 percent, to 3,759.69. The Nasdaq Composite lost 366.05 points or 3.36% to 10,524.80.

Those hopes of a Fed pivot were crushed when Fed Chairman Jerome Powell stepped up to the microphone following the rate increase announcement. Powell said that rates might have to rise more than expected.