Global stocks have recorded their best week since November as volatility eased and investors shook off recent fears that the US was veering towards a recession. Equity markets around the world have rebounded sharply from a rout earlier in the month, buoyed by a reassuring run of US data that pointed to resilient consumers and falling inflation. Wall Street’s S&P 500 index broke a four-week losing streak to close the week up 3.9 per cent, adding 0.
“Our expectations are for Powell to more clearly signal that we’ll see a September cut and offer greater context for what the Fed envisions for the pace of forward rate reductions,” said Ian Lyngen, head of US rates strategy at BMO Capital Markets. This week’s market recovery was aided by data that suggested the US economy was holding up better than had been feared.