Shares tick higher as Fed hikes rates, dollar jumps with short-term yields

On September 17, global markets experienced a surge as the Federal Reserve raised interest rates for the first time in over three years. Investors were optimistic that the Fed had finally taken steps to combat inflation, leading to a short-term jump in yields. The U.S. dollar also experienced a significant boost, reaching a seven-week high against other major currencies.

This positive sentiment was reflected in Asia-Pacific share markets, with indices in Australia, Japan, and Hong Kong all experiencing gains. However, commodity prices, particularly oil, faced a downturn as investors became more cautious about the potential impact of rising energy costs. The Bank of England's decision to keep interest rates steady was seen as a relief, but the focus then shifted to the Bank of Japan, which was expected to raise rates the following day.