Global Shares Edge Higher After Fed Rate Increase and BoE Hold

Global shares edged higher as investors absorbed the Federal Reserve’s first interest-rate increase in more than three years, while expectations for another hike later this year strengthened and bond-market inflation concerns eased somewhat. The Fed’s quarter-point increase reflected officials’ determination to bring inflation, still well above its 2% target, under control, though analysts warned that continued hawkish policy could pressure stock valuations and limit further gains. Falling oil prices and hopes of restored supply provided additional support for investor sentiment, while the dollar strengthened and commodities faced pressure. U.S. stock futures and several Asian markets rose after Wall Street’s previous decline, although Hong Kong and mainland Chinese shares fell and financial stocks weighed on the Dow. In the United Kingdom, the Bank of England held its policy rate at 3.75% in a 6-3 vote but warned that elevated and volatile energy prices could push inflation higher, sending London stocks modestly upward while keeping open the possibility of future tightening.