Global Equities Edge Higher as Investors Weigh Interest Rate Outlook

Global equity markets rose modestly on Tuesday, supported by growing expectations that major central banks are nearing the end of their tightening cycles.

In Europe, the FTSE 100 added 0.6% in morning trading, led by gains in energy and financial stocks, while the DAX 40 in Frankfurt advanced 0.4%. Across the Atlantic, US futures pointed to a positive open on Wall Street, with the S&P 500 set to extend last week’s rally.

Global equity markets rose modestly on Tuesday, supported by growing expectations that major central banks are nearing the end of their tightening cycles.

In Europe, the FTSE 100 added 0.6% in morning trading, led by gains in energy and financial stocks, while the DAX 40 in Frankfurt advanced 0.4%. Across the Atlantic, US futures pointed to a positive open on Wall Street, with the S&P 500 set to extend last week’s rally.

Investor sentiment was boosted by comments from Federal Reserve officials suggesting that inflationary pressures are continuing to ease, fuelling speculation of a possible rate cut later this year. Meanwhile, the Bank of England is widely expected to keep rates unchanged at its upcoming meeting, though policymakers remain cautious amid persistent wage growth.

Investor sentiment was boosted by comments from Federal Reserve officials suggesting that inflationary pressures are continuing to ease, fuelling speculation of a possible rate cut later this year. Meawhile, the Bank of England is widely expected to keep rates unchanged at its upcoming meeting, though policymakers remain cautious amid persistent wage growth.