Global stocks up after Wall St rebounds from inflation jolt

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Global stock markets surged Friday after Wall Street rebounded from a slump caused by higher-than-forecast inflation numbers.

Market benchmarks in London and Paris opened up more than 1%. Tokyo jumped 3.3% for its biggest one-day gain in seven months. Hong Kong and Shanghai also rose. Benchmark U.S. crude rose almost $2 per barrel.Wall Street slumped Thursday after the U.S. consumer price index for September rose 8.2%. But the S&P 500 rebounded to end up 2.6% for its biggest daily gain in 2 1/2 years.

The Fed and central banks in Europe and Asia have raised rates by unusually wide margins this year to contain inflation that is at multi-decade highs. Traders worry they might tip the global economy into recession. That appeared likely to reinforce Fed plans for more big rate hikes. Most traders already expected a rise of up to three-quarters of a percentage point, three times its usual margin, at the U.S. central bank's next meeting in November.

In Asia, Tokyo's Nikkei 225 jumped to 27,090.76 and the Hang Seng in Hong Kong gained 1.2% to 16,587.69.

 

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