U.S. equity-index futures and European stocks declined after the Federal Reserve rebuffed expectations for a dovish tilt and said interest rates will go higher for longer.
Contracts on the S&P 500 and Nasdaq 100 gauges fell at least 1.1 per cent each. Demand for haven assets sent the dollar and Swiss franc higher amid a wave of rate hikes from Taiwan to Norway. The euro halted a two-day advance as traders awaited policy decisions from the European Central Bank and Bank of England. Oil slid on signs of increasing supply. Tesla Inc. dropped in premarket New York trading after Elon Musk sold US$3.6 billion of shares.
An index of the dollar's strength headed for the biggest gain since Dec. 5. The euro fell from a six-month high, while Britain's pound declined for the first time in seven days. The ECB and BOE are expected to follow the Fed with half-point hikes. Europe's equity benchmark, the Stoxx 600, tumbled the most since Nov. 3, dragged by consumer and retail shares. Tesla dropped 2.6 per cent in early New York trading after Chief Executive Officer Musk sold almost 22 million shares of the electric-car maker for US$3.58 billion. Western Digital Corp. lost 4.1 per cent as Goldman Sachs Group Inc. recommended selling the stock.
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