Global markets lift as rate-cut hopes fuel risk appetite
Global markets pushed higher as mounting expectations of a US interest rate cut in December boosted investor confidence and reignited demand for risk assets.
On Wall Street, the S&P 500 climbed 0.69%, extending its winning streak to a fourth straight session. Technology stocks led the charge, with the Nasdaq Composite up 0.82%, while the Dow Jones Industrial Average rose 0.67%, signalling broad-based optimism.
Cryptocurrencies also joined the rally. Bitcoin surged 3.7% to $90,238, while Ethereum gained 3.2% to $3,025, reflecting growing appetite for higher-risk investments.
Currency markets sharpened the signal. The US dollar weakened by 0.3% against a basket of peers, as sterling strengthened 0.5% to $1.32 and the euro edged 0.2% higher to $1.16.
In the UK bond market, yields fell after Rachel Reeves’ Budget included tax increases, with 10-year gilt yields dropping seven basis points to 4.42%, pointing to easing funding pressures.
Asian markets followed the upbeat tone overnight. Japan’s Nikkei 225 rose 1% to 50,069.33, buoyed by expectations the Federal Reserve will cut rates at its December 10 meeting. In China, gains were more modest but steady, with Hong Kong’s Hang Seng up 0.3% and the Shanghai Composite edging 0.1% higher.
Overall, the mood across global markets reflects a growing belief that central banks are shifting back towards easing — a development that investors hope will underpin growth into year-end.
