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Global stocks mostly rise as Fed reiterates plan to battle inflation

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Agence France-Presse

<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img alt="A file photo dated 22 January 2008 showing the US Federal Reserve building in Washington, DC., USA. Matthew Cavanaugh, EPA-EFE/File" src="https://sa.kapamilya.com/absnews/abscbnnews/media/2022/overseas/05/26/fed-reserve.jpg"/><figcaption>A file photo dated 22 January 2008 showing the US Federal Reserve building in Washington, DC., USA. <em>Matthew Cavanaugh, EPA-EFE/File</em></figcaption></figure></div><p>NEW YORK, United States - Global stocks mostly rose Wednesday as markets adopted an optimistic view of Federal Reserve minutes that reiterated plans to raise interest rates.</p><p>After a positive session in Europe and a choppy morning in New York, Wall Street rallied following the afternoon release of the minutes from the May meeting.</p><p>Analysts welcomed statements that the Fed intends to move &quot;expeditiously&quot; to increase the benchmark borrowing rate and offload the massive bond holdings to tamp down inflation, statements that investors hope could improve the picture before long. </p><p>&quot;If the Fed is this aggressive, it&#x27;s not impossible to think that by July or August you could see an improvement in inflation that might limit the need for further tightening,&quot; said Gregori Volokhine of Meeschaert Financial Services, adding that markets were also pleased that the minutes did not mention a three-quarters-point interest rate hike.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/05/19/22/bsp-hikes-interest-rate-to-225-percent-as-inflation-accelerates">BSP hikes interest rate to 2.25 percent as inflation accelerates</a></li></ul><p>The broad-based S&amp;P 500 finished one percent higher. </p><p>Earlier, London stocks closed 0.5 percent higher, with Frankfurt rising 0.6 percent and Paris 0.7 percent. </p><p>The gains came as the European Central Bank warned the Ukraine war has put financial markets under renewed stress by driving up prices and impeding growth.</p><p>The war has &quot;increased financial stability risks through its impact on virtually all aspects of economic activity,&quot; ECB vice-president Luis de Guindos said in a statement.</p><p>Traders are also closely watching China, which continues to struggle with the fast-spreading Omicron coronavirus variant.</p><p>The world&#x27;s second-biggest economy is sticking to its zero-Covid strategy despite the dire impact of lockdowns on growth.</p><p>And with no easing of that policy in sight, observers warned that a series of recent support measures would not be enough to lift optimism.</p><p>&quot;Fiscal multipliers will be minimal in an economy where economic interaction and activity have slowed sharply,&quot; said Stephen Innes of SPI Asset Management.</p><p>&quot;Moving beyond mobility restrictions in short order is a pre-condition, but not a guarantee, for an Asia-led economic recovery.&quot;</p><p>Russia&#x27;s invasion of Ukraine has, meanwhile, put financial markets under renewed stress by driving up prices and impeding growth, the European Central Bank said in a report published Wednesday.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/02/21/22/bsp-has-room-to-maneuver-keeps-an-eye-on-fed-diokno">Bangko Sentral has &#x27;room to maneuver&#x27;, keeps an eye on Fed: Diokno</a></li>	<li><a href="https://news.abs-cbn.com/business/02/04/22/bsp-eyes-keeping-patient-hand-on-monetary-policies">BSP eyes keeping ‘patient hand’ on monetary policies as inflation decelerates</a></li></ul><div><strong>RELATED VIDEO:</strong></div><figure class="op-interactive"><iframe height="315" src="https://www.youtube.com/embed/w8bByobh6W4?enablejsapi=1" width="560"></iframe></figure><div class="iwantbar">Watch more News on <a href="https://www.iwanttfc.com/#!/browse/Genres/News/tag_id_genres/id_news" target="_blank">iWantTFC</a></div>

Global stocks mostly rose Wednesday as markets adopted an optimistic view of Federal Reserve minutes that reiterated plans to raise interest rates.