Federal Reserve officials raised interest rates for the first time this year by 0.25 percent. The Fed also forecast a steeper path for borrowing costs in 2017 and suggested that the labor market is tightening as inflation expectations have increased “considerably”. The Federal Open Market Committee increased its benchmark rate a quarter percentage point and explore the prospect of three more hikes in US interest rates next year sending the dollar to a 14-year high and causing a major selloff on most Asian markets. The dollar was last seen trading at record highs against the Japanese yen at 117.63 JPY as of 7:35 GMT.
European markets are set to open flat on Thursday after the U.S. Federal Reserve announced a 25 basis point rate increase and suggested that there would be an additional three hikes next year. The announcement of the rate hike sent the dollar to 14-month highs and led Wall Street to close lower. Both European and Wall Street markets plunged yesterday on the Federal Reserve’s interest rates announcements. Today Europe is set to stabilize with most Indices set to open flat to marginally higher. Germany’s DAX futures point to a flat open while France’s CAC 40 is seen opening 0.3 percent higher. U.K.’s FTSE 100 is also expected to open 0.2 percent higher while the Euro Stoxx 50 is set to open flat at 3204.0 as of 7:40 GMT.
Yahoo disclosed yet another security breach “likely different” from the one it disclosed in September and warned that it may affect more than a billion user accounts. The company received information from law enforcement last month about files that a third party had managed to acquire Yahoo data. The data was analyzed by the forensic experts while Yahoo believes an unauthorized third party, stole data associated with more than one billion user accounts in August 2013. The company also believes this that incident is likely distinct from the incident the company disclosed on Sept. 22, 2016. The breached information may include names, e-mail addresses, phone numbers, dates of birth, hashed passwords and even some security questions and answers.