Fed Rate Hike Sparks Global Market Turmoil

The US Federal Reserve raised its benchmark interest rate by 25 basis points to a range of 5-5.25 percent, despite signaling a potential pause in further hikes.

European shares fell on Thursday, with the pan-European STOXX 600 index dropping 0.8 percent. Automobile stocks led the losses, falling 2.3 percent, while oil and gas stocks rose 1.3 percent.

The Fed's decision was met with mixed signals from its statement, which dropped language implying further rate hikes would be needed. However, Fed Chair Jerome Powell later said it was too soon to say the rate hike cycle is over.