Asian and European stocks climbed Wednesday, with several key equity markets reopening after a festive break, as investors bet on the US Federal Reserve cutting interest rates as early as March.
Markets in Japan, Australia and Hong Kong all finished higher, with bourses in the latter two reopening after the Christmas trading break.
London led the way among major European stock markets as trading on its benchmark FTSE 100 index resumed for the first time since Friday.
"Global stock markets seem to be headed for an end-of-year 'Santa rally' as traders and investors return to their desks after the Christmas break, gearing up for the final push into 2024," noted Walid Koudmani, the chief market analyst at XTB trading group.
"The ongoing optimism surrounding the prospect of central banks initiating interest rate reductions in 2024, with multiple cuts expected next year, continues to propel shares higher."
Market sentiment has been largely positive since the Fed's most recent monetary policy meeting, when it indicated the rate-hike cycle could be nearing its end as global inflation slows.
Global markets were also positively affected by the so-called "Santa Claus rally", which has historically seen stocks tick higher - albeit at thinner volumes - during the end-of-year holiday period.
Tokyo's stock market closed up more than 1% Wednesday, with investors continuing to react to signals from the Bank of Japan that it may reverse its ultra-loose monetary policy, which has seen it avoid rate hikes.
Wall Street rose Tuesday, with the Dow and broad-based S&P 500 both rising 0.4% and the tech-rich Nasdaq Composite Index climbed 0.5%.
Bucking the rising trend, however, was Apple, whose share price dipped after a US ban on some of its smartwatch models came into effect, a by product of a patent dispute.
The ban stems from a complaint made to the International Trade Commission in mid-2021 accusing Apple of infringing on medical device maker company Masimo Corp's "light-based oximetry functionality".
Elsewhere on Wednesday, oil markets reversed last week's gains, mainly owing to fears regarding the possible regional spread of the conflict between Israel and Hamas.
Key figures around 1115 GMT
– London - FTSE 100: Up 0.6% at 7740.86 points
– Paris - CAC 40: Up 0.2% at 7583.68
– Frankfurt - DAX: Up 0.2% at 16738.19
– EURO Stoxx 50: Up 0.3% at 4533.33
– Tokyo - Nikkei 225: Up 1.1% at 33681.24 (close)
– Hong Kong - Hang Seng Index: UP 1.7 percent at 16624.84 (close)
– Shanghai - Composite: Up 0.5 percent at 2,914.61 (close)
– New York - Dow: Up 0.4% at 37545.33 (close)
– Dollar/yen: Up at 142.59 yen from 142.34 yen on Tuesday
– Euro/dollar: Up at $1.1051 from $1.1042
– Pound/dollar: Up at $1.2727 from $1.2725
– Euro/pound: UP at 86.82 pence from 86.77 pence
– West Texas Intermediate: Down 0.7%at $75.05 per barrel
– Brent North Sea crude: Down 0.6% at $80.62 per barrel
AFP