Global Markets Wobble After Fed's Decision To Maintain Interest Rates

Global markets experienced fluctuations Thursday following the Federal Reserve's announcement of maintaining interest rates, as reported by Zimo Zhong for the Associated Press (AP).

Despite the mixed finish, US futures for the S&P 500 surged by 0.5%, while those for the Dow Jones Industrial Average were 0.4% higher, indicating a potential rise in US shares. I Photo: Kurtis Garbutt Flickr

In the United States, stocks showed a mixed finish, causing uncertainty in the market. However, futures for the S&P 500 surged by 0.5%, while those for the Dow Jones Industrial Average were 0.4% higher, indicating a potential rise in US shares.

Meanwhile, European markets opened with mixed results, with London's FTSE 100 increasing by 0.4% to 8,155.28 in early trading.

However, Germany's DAX edged slightly lower by less than 0.1% to 17,925.06, and the CAC 40 in Paris experienced a decline of 0.7% to 7,926.97.

In Asia, Tokyo's Nikkei 225 index slipped by 0.1%, closing at 38,236.07. The Japanese yen saw a significant surge of up to 2% in early Asia hours, driven by speculation of potential intervention by Japanese authorities and a weaker US dollar post the Fed meeting.

South Korea's Kospi also experienced a decline of 0.3% to 2,683.65, following the release of official data showing a slower year-on-year increase in consumer prices for April.

Conversely, Hong Kong's Hang Seng index rose by 2.4% to 18,187.56, while markets in China remained closed for the Labor Day holiday. Australia's S&P/ASX 200 advanced by 0.2% to 7,587.00.

Overall, the global market exhibited varied reactions to the Federal Reserve's decision, reflecting the uncertainty and cautious sentiment prevailing among investors.