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Fed Rate Rise Strips Global Markets of All Christmas Cheer

After the Federal Reserve raised interest rates by another quarter of a percentage point on Wednesday, global markets are taking a dive.

Stocks across the globe fell in the first hours of trading on Thursday. In Asia, stocks were lower overall, but markets were affected differently. The Shanghai composite dropped about 0.52%, while the Shenzhen composite recovered slightly, ending up by 0.202%. Hong Kong’s Hang Seng index dropped 1.05%, while Japan’s Nikkei 225 suffered more, ending the day down 2.84%. South Korea’s Kospi dipped 0.9% and in Australia, the ASX 200 fell 1.34%.

European stocks were even harder hit. Britain’s FTSE 100 dropped 1.6% in the first 30 minutes of trading, hitting a 28-month low, while the country’s FTSE 250 index hit its lowest level in more than two years as well. The Guardian reports that every sector is in the red. The European Stoxx 600 index also hit a two year low on Thursday.

The declines seen in Europe and Asia build on sharp declines seen in the U.S. on Wednesday following the Federal Reserve’s announcement. The S&P 500 ended 1.54% lower, the Dow was down 1.49%, and Nasdaq dropped 2.17%, representing possibly the biggest December decline for U.S. stocks since the Great Depression.