Brent crude futures rose $1.15, or 2.1 percent, to settle at $56.29 a barrel, while USA crude futures gained 93 cents, or 1.9 percent, to settle at $50.41.
In Toronto, the TSX gained over 91 points at 15,384.
Federal Reserve Chair Janet Yellen strongly hinted that more regulatory penalties against Wells Fargo may be forthcoming related to its phony-accounts scandal, saying its activities were beyond the pale.
In the United Kingdom, the previously identified growth slowdown is expected to continue through 2018, while uncertainty remains over the outcome of negotiations around the decision to leave the European Union, the OECD said. But while most economists see a clear link between low rates and record high stock markets the extent to which QE contributed to the fall in the unemployment rate is more controversial, and likely to remain so. Excluding auto fuel, retail sales volume climbed 1% in August after rising 0.7% a month ago.
"A lot of people were thinking (the Fed) would pass in December", Silvia said. Brent crude, used to price worldwide oils, gained $1.15, or 2.1 per cent, to $56.29 a barrel in London.
"US growth could well be affected in the short-term by the recent devastating hurricanes, but the labour market continues to prosper and shows no signs of slowing down".
"Evaluating the effects of monetary policy is hard, even in the case of conventional interest rate policy", St Louis Fed economist Stephen D. Williamson wrote recently.
Of course, this misses the obvious: The Fed is about to finally start the process of reversing years of QE-based bond-buying stimulus that's been responsible for the smooth and easy nature of the bull market since 2012.
After the conclusion of its two-day meeting, the FOMC voted unanimously to maintain its interest rates at 1.00 -1.25 percent. A press conference is due later.
What all this adds up to is that the market may have come to have certain expectations from the current Fed but may have an entirely new Fed policy and verbiage that has to be interpreted in 2018. The FTSE 100 index of leading British shares was off 0.1 percent.
The Standard & Poor's 500 index of stocks has risen just 0.08 percent ahead of the Fed announcement at 2 p.m. Heating oil added 3 cents to $1.81 a gallon. The drug is used for the treatment of patients with hereditary ATTR amyloidosis with polyneuropathy. Benchmark 10-year notes last fell 4/32 in price to yield 2.2428 percent, from 2.23 percent late on Monday.
Stocks in NY were called for flat open on Wednesday, with the Dow Jones Industrial Average, the S&P 500 index and Nasdaq Composite all pointed flat ahead of the Fed's interest rate decision and economic projections, which come after the London close but during NY market hours. Brent crude, used to price global oils, was up $1.05, or 1.9 percent, to $56.19 a barrel in London. Some economists say they think the figure could end up around $2.5 trillion, still far above the $900 billion the Fed held in its portfolio in pre-crisis days.
The S&P 500 /quotes/zigman/3870025/realtime SPX extended losses but eventually took back some of the lost ground, leaving the index on track to end the day off slightly but not far off levels seen ahead of all the Fed action.
Four times a year, Federal Reserve policy makers at the Open Market Committee submit their projections about where short term interest rates are headed.
The pick-up in inflation and the renewed volatility in the rand is likely to worry the Reserve Bank's monetary policy committee (MPC)‚ which is widely expected to cut the repurchase rate by at least 25 basis points.
In their post-meeting statement, rate-setters again noted that overall inflation and the "core" measure, which excludes food and energy prices, had declined in 2017 and were below 2%.