- New study reinforces theory Covid emerged at Chinese market
- World Bank boosts climate financing by 10 percent
- Bagnaia eyeing summit on home ground in 100th MotoGP
- 'Something was wrong', defendant in French mass rape tells court
- Hezbollah chief admits 'unprecedented' blow in device blasts
- Sales of US existing homes slip slightly in August
- Fear, panic haunt Lebanese after devices explode
- Labuschagne sparks Australia fightback in England ODI opener
- S.Africa's HIV research power couple says fight goes on
- Why is Israel focusing on border with Lebanon?
- Mpox vaccines administered in Rwanda, first in Africa
- US Fed rate cut is 'very positive sign' for economy: Yellen
- Unknown Mozart string trio discovered in Germany
- 'Are we five-year-olds?' F1 drivers won't mind their language
- Brazil judge orders X to reimpose block or face hefty fine
- Munich to rename stadium street after Beckenbauer
- Champions Italy to face Argentina in Davis Cup Final 8
- The winding, fitful path to weight loss drug Ozempic
- Italians defeat American Magic to reach Louis Vuitton Cup final
- Norris has 'nothing to lose' as he hunts Verstappen in Singapore
- Kyiv 'outraged' at Swiss showing of Russian war film
- French city renames Abbe Pierre square after abuse claims
- Footballer charged after huge cannabis seizure at UK airport
- Vatican recognises Medjugorje shrine, but not Virgin's messages
- Israel bombs Hezbollah strongholds in Lebanon after wave of deadly blasts
- Bank of England freezes rate after jumbo US cut
- Playing Nadal is 'kind of a nightmare', says Alcaraz
- Portugal tackles last of deadly northern forest fires
- Ton-up Ashwin lifts India to 339-6 against Bangladesh
- Departing NATO chief warns US against 'isolationism'
- Coming winter 'sternest test yet' for Ukraine energy grid
- Evacuations as tail of Storm Boris floods northeast Italy
- Lebanon's Hezbollah reeling after second wave of deadly blasts
- Taiwan recognises same-sex marriages between Chinese, Taiwanese
- Stock markets rally after jumbo US rate cut
- Gabon's ousted leader Bongo says renouncing politics for good
- Lebanon device blasts: what we know about deadly attacks
- Equity markets rally after jumbo US rate cut
- Late Harrods owner Al-Fayed accused of rape: BBC
- Hong Kong man sentenced 14 months for wearing 'seditious' T-shirt
- Lebanon's Hezbollah in disarray after second wave of deadly blasts
- Equity markets, yen rally after jumbo US rate cut
- Meta and Spotify blast EU decisions on AI
- Hasan takes three as Bangladesh rattle India in first Test
- Two killed during police operation in New Caledonia
- Flood-hit region leaders to meet in Poland to discuss EU aid
- Sri Lanka to vote in first poll since economic collapse
- Hong Kong probe finds Cathay Airbus defect could cause 'extensive' damage
- AI development cannot be left to market whim, UN experts warn
- All Blacks primed for 'hell' of a Wallabies clash
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Stocks rally before key Fed update
European and US stock markets powered higher Wednesday, recovering further from recent sharp losses, as traders await the outcome of a key Federal Reserve policy meeting.
Wall Street's main indices snapped higher at the opening bell, rebounding from losses on Tuesday. The Dow climbed 0.9 percent, with the broader S&P 500 rising 1.6 percent and the tech-heavy Nasdaq Composite jumping 2.5 percent.
The major European indices were also strongly higher.
After weeks of uncertainty, the US central bank delivers Wednesday its views on the state of the world's top economy and how officials plan to tackle decades-high inflation without knocking its recovery off course.
While Fed boss Jerome Powell has pledged that interest rate rises would be carefully calibrated, the prospect of higher borrowing costs has rattled markets across the world.
Most key indices have been deep in the red from the start of the year -- with Wall Street particularly hard hit.
Powell's comments Wednesday will be pored over for signs of the Fed's plans, which most commentators believe include a first hike in March.
"The big question going into this meeting for traders and investors is whether the Fed will increase... four times this year and when the first interest rate hike will take place," said Naeem Aslam, chief market analyst at Avatrade.
- Market buzz -
Part of the market's exuberance may also be speculation that Powell may tone down his remarks about the need to aggressively raise interest rates.
"There is even some buzz that Fed Chair Powell won't sound as hawkish as feared when he holds his press conference," said analyst Patrick J. O'Hare at Briefing.com.
"That view may come back to bite the market," he added.
Despite recent stock market volatility due to concerns over interest rate hikes, analysts believe investors remain relatively upbeat about the prospects for the global economy once the current wave of the Covid-19 pandemic wanes.
"Providing (a) boost to the stock markets is optimism that the economic recovery is going to speed up in the months ahead," said Fawad Razaqzada at ThinkMarkets.
Pent up demand for holiday travel will be unleashed as "travel restrictions continue to ease across Europe as Omicron cases decline and more people get double or triple vaccinated," he added.
Nevertheless, authorities are currently downgrading growth forecasts as the impact of the Omicron variant becomes clear.
Germany on Wednesday trimmed its 2022 growth forecast to 3.6 percent, down from 4.1 percent.
The International Monetary Fund on Tuesday lowered its growth outlook for the global economy saying it has started the year "in a weaker position than previously expected".
It said Omicron threatened to set back the recovery as countries impose containment measures, while other issues remained, including inflation and geopolitical tensions.
Included in those tensions is the standoff on the Ukraine-Russia border, with Moscow building up troop numbers and the West led by the United States warning the risk of an invasion "remains imminent".
US President Joe Biden said such a move would prompt "enormous consequences" and even "change the world", adding that he would consider imposing direct sanctions on Russian counterpart Vladimir Putin on top of a raft of measures being drawn up.
- Key figures around 1430 GMT -
London - FTSE 100: UP 1.8 percent at 7,504.16 points
Paris - CAC 40: UP 2.5 percent at 7,006.84
Frankfurt - DAX: UP 2.3 percent at 15,475.54
EURO STOXX 50: UP 2.3 percent at 4,172.30
New York - Dow: UP 0.9 percent at 34,617.19
Tokyo - Nikkei 225: DOWN 0.4 percent at 27,011.33 (close)
Hong Kong - Hang Seng Index: UP 0.2 percent at 24,289.90 (close)
Shanghai - Composite: UP 0.7 percent at 3,455.67 (close)
Euro/dollar: DOWN at $1.1288 from $1.1305 late Tuesday
Pound/dollar: UP at $1.3510 from $1.3507
Euro/pound: DOWN at 83.59 pence from 83.66 pence
Dollar/yen: UP at 114.24 yen from 113.87 yen
Brent North Sea crude: UP 1.3 percent at $89.37 per barrel
West Texas Intermediate: UP 1.1 percent at $86.50 per barrel
burs/rl/gw
A.Gasser--BTB