Global Stock Surge Amid U.S. Rate Cut Speculation and UK Budget Chaos

Global stocks experienced a substantial rally for the fourth consecutive day, driven by strong expectations of a U.S. Federal Reserve rate cut in December. Market optimism was further buoyed by tech sector gains and new UK fiscal forecasts causing significant market reactions. Economic indicators also pointed towards a potential Fed rate cut.

Global stocks surged for a fourth day in a row on Wednesday, fueled by robust expectations for a Federal Reserve rate cut in December. Wall Street gained momentum, particularly in the tech sector, with Dell Technologies' shares spiking nearly 7% after positive quarterly results.

Comments from Federal Reserve officials bolstered hopes for an upcoming rate cut, further energizing market sentiment. Meanwhile, in Britain, sterling experienced volatility due to a premature release of fiscal forecasts ahead of the UK budget announcement. British finance minister Rachel Reeves revealed an aggressive tax-raising budget, tightening fiscal measures.

In currency markets, the dollar index fell, while the euro and sterling strengthened. Japanese yen slightly weakened, amid speculation of a potential interest rate hike by the Bank of Japan. Government bond yields exhibited mixed movements, with ten-year gilt yields dropping amidst the ongoing market rally.

(With inputs from agencies.)