Interest rates more likely to rise than fall, warns Bailey Business

Thanks for joining me. Oil giant Shell managed to avoid the fate that befell rival BP earlier in the week as its earnings for the third quarter stayed largely in line with expectations.

The oil and gas giant revealed it had increased adjusted earnings from $5.1bn (£4.2bn) in the second quarter to $6.2bn (£5.1bn) in the three months to September.

5 things to start your day 

1) Fed chief warns still ‘long way to go’ on inflation fight | The central bank chief left the door open for future interest rate rises even as the Fed voted to hold borrowing costs unchanged

2) Warning for Bank of England as Lagarde is accused of hammering eurozone economy | There are fears central banks may have taken their determination to tame inflation a little too far

3) Thames Water to cut 300 jobs as it battles £14bn debt pile | UK’s largest water company targets retail and digital divisions in bid to improve finances

4) Private equity giant behind Six Nations delays stock market listing | This is the second time CVC Capital Partners has put its IPO plans on hold

5) Blow to Putin as Russia faces UK trial over $60bn Yukos oil battle | Three former shareholders of the oil giant are fighting to enforce a 2014 arbitration award

What happened overnight 

 Asian shares were mostly higher after the US Federal Reserve indicated it may not need to raise interest rates again after deciding to hold monetary policy steady for a second straight meeting.

Japan’s benchmark Nikkei 225 gained 1.1pc in afternoon trading to 31,950.61. Australia’s S&P/ASX 200 jumped 0.9pc to 6,899.70. South Korea’s Kospi surged 1.8pc to 2,341.96.

Hong Kong’s Hang Seng added 0.9pc to 17,246.87, while the Shanghai Composite edged 0.3pc lower to 3,015.33.

In Japan, Prime Minister Fumio Kishida announced an economic stimulus package worth about $113bn (£92.8bn) that is meant to cushion the blow to household budgets from rising inflation and timed to counter weakening public support for his government. The package includes tax breaks for individuals and companies and subsidies to reduce rising energy costs.

Wall Street stocks rallied Wednesday after the Federal Reserve paused interest rates, with the Dow Jones Industrial Average rising 105.95 points or 0.32pc to 33,158.82. 

The S&P 500 gained 20.88 points or 0.50pc to 4,214.68. The Nasdaq Composite added 96.25 points or 0.75pc to 12,947.48.

Meanwhile, the benchmark 10-year Treasury yields fell to 4.766pc, the lowest since October 17.