World equity markets rallied on Wednesday and focus turned to Jerome Powell, who speaks later in the day in what will be the U.S. Federal Reserve chief’s last opportunity to steer sentiment ahead of the Fed’s December meeting.
“I’m not sure if markets are looking for a pivot but we think he will stress the Fed is nowhere near the end of it’s tightening cycle,” said James Rossiter, head of global macro strategy at TD Securities in London. Hopes for a China reopening alongside an expectation that inflation and central bank interest rates may be close to peaking meant that November looks set to end as great month for many markets.
Preliminary November inflation data for the euro zone at 1000 GMT could also boost investor sentiment.Signs that U.S. inflation is peaking, meaning the Fed can slow the pace of its aggressive rate hikes, has boosted government bond markets but dented the robust dollar.