The Federal Reserve raised the rate it charges banks for emergency loans, stating more confidence in the financial system’s recovery. The result this morning is mixed markets and exchange traded funds (ETFs).

The Federal Reserve’s move yesterday is having ripple effects throughout Europe and Asia. At first, the markets got a case of the jitters before they took the move for what it was intended to be: a vote of confidence in the U.S. economy, say Jack Ewing and Sewell Chan for The New York Times. European stocks are gaining for the fifth consecutive day. [Italy Forecast for Growth, But Dangers Lurk.]

  • BLDRS Asia 50 ADR Index (NASDAQ: ADRA) is down 1% so far today

  • SPDR DJ Euro Stoxx 50 (NYSEArca: FEZ) is down 0.25% so far today

Oil prices have shot up 11% in the last two weeks, and they’re showing no signs of stopping today. A refinery strike in France and concerns about Iran’s nuclear program are threatening to make supplies tight in the future, reports Chris Kahn for the Associated Press. United States Oil (NYSEArca: USO) is up 6% in the last five trading days. [How to Harness Energy Using ETFs.]

Inflation seems to be in check, if today’s government report is any indication. Consumer prices rose a scant 0.2%; excluding food and energy, prices actually fell 0.1%. It’s the first decrease since 1982, says Javier C. Hernandez for The New York Times. Nevertheless, investors shook it off and the dollar continued to strengthen. PowerShares DB U.S. Dollar Bullish (NYSEArca: UUP) is up 0.3% so far. [What Fed Rate Hike Means.]

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.