Global stocks and bond yields rose after the US Federal Reserve’s (Fed) announcement of ending its bond -buying reduction program in March and starting interest rate hikes 3 times by next year.
The new economic forecast predicts inflation to rise 2.6% next year from expectations of 2.2% in September and the unemployment rate to fall 3.5%.
MSCI’s worldwide stock gauge drove 0.10% and the pan-European STOXX 600 index jumped 0.26%.
The Dow Jones Industrial average rose 390.19 points or 1.10% at 35,934.37, the S&P 500 added 75.48 points or 1.63% at 4,708.37 and the Nasdaq Composite jumped 330.94 points or 2.17% at 15,568.58.
US 2 -year treasury yields rose 3.8 basis points at 0.697% while 10 -year treasury note yields added 2.4 basis points at 1.463% and treasury bond yields jumped 3 basis points at 1.849%.
The dollar index was down 0.227% while the Euro was up 0.31% at $ 1.1292 and gold spots at $ 1,779 an ounce.
Inflation in the UK soared in November to a 10 -year high of 5.1% exceeding economists ’forecasts ahead of the Bank of England (BoE) rate -setting meeting on Thursday has made investors put back confidence for the BoE to raise rates.
Oil prices jumped higher as a result of yesterday's loss rebound with US crude oil prices up 0.20% at $ 70.87 a barrel while Brent crude oil prices jumped 0.24% at $ 73.88 a barrel.
