Global Markets Rally Amid Trump's Unfolding Policies

Global stocks rose as the market anticipated President-elect Trump's cabinet moves. Despite strong tech shares and a rally in the US S&P 500 index, the dollar and bond yields held steady. Analysts are cautious due to inflationary pressures from Trump's proposed policies and resilient economic data.

In a notable market shift, global stocks climbed 1% on Tuesday as investors adjusted to President-elect Donald Trump's impending cabinet decisions. Despite the dollar and U.S. bond yields stabilizing near multi-month peaks, tech shares led Wall Street's rebound from last week's steep declines.

MSCI's global stock index snapped a four-day losing streak with a 1% gain on Tuesday, aided by decreasing expectations for a Federal Reserve interest-rate cut in December. This follows Trump's fiscal policies, which analysts predict could fuel inflation, complicating further Fed rate reductions.

Meanwhile, European and Asian markets largely reflected positive trends, though Chinese markets lagged, overshadowed by potential U.S. tariffs and awaited Beijing's stimulus details. U.S. S&P 500 futures forecasted moderate gains, with markets keenly observing Trump's influence on economic conditions and geopolitics.

(With inputs from agencies.)