Global Markets Surge Amid Rate Cut Bets and Budget Anticipation

Global stock markets rallied for a fourth day as expectations for U.S. rate cuts grew and anticipation built for the UK budget. Investors are closely watching potential fiscal impacts and central bank policies in the U.S., UK, Japan, and New Zealand, influencing currency and bond markets worldwide.

Global stock markets continued their upward trajectory for the fourth consecutive day on Wednesday, propelled by growing bets on U.S. rate cuts. European investors are also closely monitoring the potential for a Ukraine peace deal, while bracing for a challenging UK budget announcement later in the day.

The UK's anticipated budget is set to address significant fiscal challenges, with Finance Minister Rachel Reeves potentially introducing £20-30 billion in new tax increases. The aftermath of this fiscal decision will be scrutinized by bond markets, assessing the UK's trajectory towards sustainable debt management.

Across the globe, movements in currency and bond markets reflect broader monetary policy shifts. The yen strengthened slightly amid speculation of a Japanese rate hike, while New Zealand adjusted its rates, ending its easing cycle. Anticipation for peace in Ukraine and its effects on oil prices also attracted investor attention.

(With inputs from agencies.)