Fed’s dovish tone lifts global shares
Risk-on trade drives equities to their highest in more than two weeks, as European stocks join a global rally and core bond yields fall
London — A more dovish tone from Federal Reserve chair Jerome Powell helped to revive risk appetite on Thursday, driving world stocks to their highest in more than two weeks, as European equities joined a global rally and core bond yields fell. European stocks rallied, with the leading eurozone index up 0.8%, and tech, mining and autos sectors — the worst hit by recent losses — scoring the biggest gains. Yields on German bonds fell, tracking a decline in US treasury yields, after Powell said on Wednesday that US interest rates were “just below” neutral, less than two months after saying rates were probably “a long way” from that point. “Given the volatility you’ve seen recently, it’s probably quite reasonable to expect a little bit of a bounce. That being said, given the headwinds out there I can’t see it being sustained,” said Gary Waite, portfolio manager at Walker Crips in London. Powell’s comments triggered a rally in US stocks and pushed the US treasury 10-year bond yield as lo...
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