Global stocks at fresh highs before Fed meeting

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Respondents in Bank of America survey see price pressure as temporary

Thyagaraju Adinarayan and Alun JohnLondon/Hong Kong — World stocks hit yet another record high on Tuesday, with European shares poised for their longest winning streak since 2019 as investors bet that “transitory” inflation pressures are likely to keep the US Federal Reserve from signalling a shift in policy settings at its meeting later in the day.

“Several factors that have pushed up inflation are likely to fade in the coming months,” said Mark Haefele, chief investment officer at UBS Global Wealth. “We don’t expect inflation to prompt a premature tightening of monetary policy or to derail the equity rally.” Nearly 60% of economists in a Reuters poll expect a taper announcement will come in the next quarter, despite a patchy recovery in the job market.

China’s markets were closed on Monday for a holiday, meaning this was their first response to a joint statement by the G7 that had scolded Beijing over a range of issues, which China called a gross interference in the country’s internal affairs.In the currency markets, the dollar held on to its gains against its main counterparts. The dollar index was at 90.414, not far from the top of its recent range.

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