Global shares fall on Fed rate hike, UK rate outlook

People walk near an electronic stock board showing Japan's Nikkei 225 index at a securities firm Thursday, June 15, 2017, in Tokyo.

U.S. rates are now at their highest level in nine years.

The U.S. Federal Reserve raised its main rate by a quarter point this week and Mexican policymakers are seen delivering a move of the same magnitude in order to maintain the appeal of peso-denominated debt to yield-hungry investors. It is bloated with the huge number of U.S. government bonds, or treasuries, and mortgage-backed bonds it bought in the years after the 2008 financial crisis in order to lower long-term interest rates and pump prime the economy with cash. Not always, but this disparity is odd, and could play havoc with asset prices if the market has been wrong-footed and needs to play catch up with the Fed, which could see a sharp turnaround for the dollar and U.S. [bond] yields, ' Brooks warned.

Asia-Pacific stocks traded lower as investors took profits in the wake of the United States rate decision, with the Nikkei 225 trading down 0.26 percent and the Hang Seng down 1.20 percent (0952GMT). The FTSE 100 of Britain dropped 0.7 percent. The S&P ASX 200 in Australia tumbled 1.2 percent to 5,761.00.

Elsewhere, the Labor Department said consumer prices slipped, mostly thanks to lower energy prices.

INTEREST RATES: The Federal Reserve raised interest rates for the third time since December, something investors had widely expected based on the Fed's recent statements.

In currency markets, the dollar was up 0.2 percent against a basket of major peers, having earlier traded in negative territory as investors wondered whether the Fed would be able to raise rates again this year.

ANALYST VIEWPOINT: "Asian markets were seen broadly lower this morning, taking little cues from overnight markets".

The rate setting committee of U.S central bank said that the economy had continued to strengthen and job gains have remained solid, which has indicated its views on recent consistency in inflation as largely transitory. That spurred selling of real estate developers' shares.

Nik Wallenda's wife performs risky stunts over Niagra Falls
Wallenda will hang from a lyra, or a hula-hoop shaped ring, from a helicopter hovering 300 feet over Horseshoe Falls. The acrobat's husband, Nik Wallenda , walked an 1,800-foot tightrope from the NY side of Niagara Falls into Canada.

For a look at the issues now facing the markets, make sure to read today's Ahead of Wall Street article.

"There is a possibility they raise two more times", says Hodges, which he argues is not priced into government bond yields.

WALL STREET ON WEDNESDAY: The Standard & Poor's 500 index edged 0.1 percent lower, to 2,437.92. The tech-laden Nasdaq Composite Index fell 0.4% to finish at 6,194.89.

ENERGY: Oil futures plunged overnight after the US government said oil supplies shrank only slightly last week while gasoline stockpiles grew. They fell as low as 2.103 percent following the downbeat data, their lowest since November 10.

Brent crude, the global benchmark, was down 12 cents a barrel at $46.88. Facebook shed $1.72, or 1.1 percent, to $148.53 and Apple gave up $1.81, or 1.3 percent, to $143.35.

The euro was down 0.3 percent at $1.1183, a six-day low, while the yen was flat at 109.58 per dollar. Citizens Financial dropped 98 cents, or 2.7 percent, to $35.90 and Lincoln National lost $1.49, or 2.3 percent, to $67.06. If you would like to discuss another topic, look for a relevant article.

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