Global shares fall on Fed rate hike, plunge in oil prices

The average 30-year fixed mortgage has a rate of 4.02 percent, the lowest since November 16, 2016, and an average of 0.24 discount and origination points.

Greg McBride, an analyst with consumer financial site, tells NPR's Yuki Noguchi that, taken together, the Fed's moves have caused home equity and auto loan rates to increase about 1 percentage point over the last two years.

United States 10-year Treasury yields were last at 2.134 percent, below their USA close of 2.138 percent.

Germany's DAX fell 0.9 percent to 12,690 while the CAC40 of France sank 1.1 percent to 5,188.

Among stocks in London, retailers and housebuilders were leading declines, with Charles Church builder Persimmon down 6% or 133.5p to 2288.5p. The S&P 500 dipped 0.1 percent or 2.43 points to finish the session at 2,437.92 and the Nasdaq edged lower by 0.41 percent or 25.48 points to end at 6,194.89.

After a rally to the $1,265 area, gold came under renewed selling pressure in Europe on Thursday as the dollar gained fresh support against major currencies with EUR/USD sliding to the 1.1150 area.

".because we also expect the neutral level of the federal funds rate to rise somewhat over time, additional gradual rate hikes are likely to be appropriate over the next few years to sustain the economic expansion". However, China's central bank left interest rates for open market operations unchanged on Thursday, unlike in March, when it raised rates within hours of the Fed's move.

The MSCI All-Country World index was up 0.1 percent and has remained stuck in a tight range this month.

The widely expected quarter-point interest rate hike will take the Fed funds target rate above 1 percent for the first time since the immediate aftermath of the collapse of Lehman Brothers in 2008.

The Fed has now raised rates four times as part of a normalization of monetary policy that began in December 2015. Fed expected USA unemployment to end the year at 4.3 per cent instead of its previous 4.5 per cent forecast.

MSCI's broadest index of Asia-Pacific shares outside Japan dropped 0.7 percent, led by resource shares.

Euro zone government bond yields edged up in early trade.

Oil prices, which are having a negative impact on inflation worldwide, held steady with global inventories high and doubts over whether the OPEC producers group would be able to implement agreed output cuts. Brent crude, used to price worldwide oils, fell 6 cents to $46.94 a barrel.