Premarket: World stocks pause near five-month peaks, caution sets in

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MSCI’s world equities index was broadly steady on Wednesday after rising more than 6 per cent so far this month

World stocks paused near five-month highs on Wednesday, as signs that central banks might need to keep hiking interest rates for longer dampened a recent wave of optimism that aggressive monetary tightening among big central banks is almost done.

has peaked and that U.S. interest rate rises will taper off. The dismantling of COVID controls in China and the re-opening of its borders have further boosted investor sentiment. “Broadly speaking, the problem that we have is that economic conditions are getting worse and the data we are looking at points in that direction.”

In currency markets, the Australian dollar surged to $0.7123 after the latest inflation data. Australia’s currency has risen almost 2% this week and is poised for its biggest weekly jump in over two months. Germany’s Ifo institute said its business climate index rose to 90.2, in line with consensus according to a Reuters poll of analysts and up from 88.6 in December.

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