Global shares falter as Fed fails to maintain upbeat sentiment
Global shares were seen at lows, while the dollar jumped on Thursday. This followed after the Federal Reserve pledged to maintain ultra-low interest rates for a long time. However, it opted out from providing stimulus to salvage the virus-beaten U.S. economy.
MSCI’s broadest index of Asia-Pacific shares outside Japan recorded a 0.82% decline. The index was seen losing its momentum after five consecutive days of earnings. Japan’s benchmark index Nikkei dropped 0.45%
In Asia, futures for the S&P 500 declined 0.85%. The drop came after the S&P 500 shed 0.46% on Wall Street. Meanwhile, the tech-heavy Nasdaq tallied a 1.25% loss as its futures dropped 1.13%.
While the Fed pledged to hold interest rates near zero until inflation surpassed the 2% inflation target, recent economic outlook foresees that inflation will never surpass 2% over the course of three years.