The Dow Jones closed just short of another record overnight, as markets in Europe and the US gained ground following the latest Fed meeting.

Wall Street swung higher after the Fed stuck to its view that interest rates will remain near zero for a considerable time after stimulus wraps up in the next few months.

In economic news, US consumer prices fell in August for the first time in 16 months, validating the Fed's decision to keep interest rates on hold for the time being.

European shares also bounced back, with added support coming from China's decision yesterday to inject 500 billion yuan into the country's financial system.

Among the commodities, oil declined after a weekly supply report showed a surprise increase in US inventories.

In currency markets, the greenback barrelled higher against its major rivals as traders judged it's only a matter of time before the Fed adopts a more hawkish tone on interest rates.

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