Global Markets Surge Amid Political Shakeups and Economic Speculation

World stocks rose as U.S. shares hit record highs, bolstered by potential fiscal policies under a second Trump presidency. U.S. Treasuries faced pressure, while German political shifts influenced the euro. The Fed's policy meeting and central bank decisions also impacted markets, demonstrating global economic dynamics at play.

World stock markets experienced gains on Thursday, just a day after U.S. shares reached unprecedented heights. This market rally followed speculation of expanded fiscal policies under the prospective second term of Donald Trump and in anticipation of a critical Federal Reserve policy announcement.

In Europe, the STOXX 600 index climbed 0.7% amidst rising Asian markets. Meanwhile, U.S. stock futures edged up 0.2% after major Wall Street indexes hit all-time peaks, driven by expectations of significant fiscal expansion from a Republican-led government, including corporate tax cuts and deregulation.

U.S. bond markets showed a contrasting response, with yields rising due to fiscal policy expectations amid high U.S. debt levels. In currency markets, the euro rebounded slightly from a previous fall influenced by German political turmoil, while central banks globally made key interest rate decisions impacting both broader market sentiment and specific commodities.

(With inputs from agencies.)