World stocks hold on to upbeat mood, dollar stalls
World stocks rallied on Tuesday, as traders held on to hope that interest rates will soon peak and come down later this year, even if latest U.S. jobs data supported the case for a May hike from the Federal Reserve.
Those hopes were fanned by an analysis in the International Monetary Fund’s latest World Economic Outlook that suggested the current high interest rates “are likely to be temporary” and predicted that, once inflation was brought under control, rates in advanced economies would eventually return to pre-pandemic levels.
Trading was largely sluggish as many markets reopened after a long holiday weekend. European stock markets opened broadly firmer (.STOXX), U.S. stock futures pointed to a positive open for Wall Street shares , and Japan’s blue-chip Nikkei rallied over 1% (.N225).
Supporting the case for global inflation easing further this year, data showed China’s consumer inflation hit an 18-month low and factory-gate price declines sped up in March as demand remained weak.
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