Equities sink on Fed outlook, before Europe rate calls

Global stocks sank on Thursday and the dollar rose after the US Federal Reserve hiked interest rates again and signalled they would go higher to fight inflation.
Markets were also on tenterhooks ahead of expected rate increases from the Bank of England and the European Central Bank.
Both are expected to mirror the Fed's half-point hike to tackle soaring inflation, after rate increases also in Norway and Switzerland.
Sentiment was hammered on Thursday after the Fed suggested that it saw US rates topping out next year at 5.1 per cent, higher than markets had predicted.
"Equity markets are back in the red... as investors reel from the nasty shock delivered by the Fed and look ahead to central bank rate decisions on the agenda today," said Oanda analyst Craig Erlam. "The question now becomes whether other central banks will take a similarly hawkish position against the markets and ruin any hope of a Santa rally this year."

The Fed also warned that the world's biggest economy would grow less than expected next year, fuelling fresh recession fears. Rising rates fan recession concerns because they push up loan repayments for consumers and companies, denting expenditure, investment and...