Global Stocks Surge in Strongest Weekly Rally of the Year 📈

Global stocks are on track for their most robust weekly rally in a year, with sliding global yields and robust corporate earnings reports. World stocks have surged 4.2% this week, marking their largest weekly gain since November 2022. The S&P 500 also recorded its best day in six months, driven by strong corporate earnings. The prevailing sentiment is that central banks, including the Federal Reserve, Bank of England, and European Central Bank, have concluded their rate hikes. This has led to significant rallies in bonds, stocks, and risk assets, with the U.S. 10-year yield falling about 40 basis points from its recent peak, and the dollar weakening. Investors are now focused on when the easing cycles will begin and how extensive they will be, with markets pricing in a less than 20% chance of a Fed rate hike in December.