- Hefty Australian penguin chick 'Pesto' becomes star
- Fashion's fun 'Frankenstein' flies after Olympic triumph
- Volkswagen crisis pits homegrown leaders against each other
- Princess Zelda takes the lead in 'Echoes of Wisdom'
- Astros clinch division title, Yankees kept waiting
- Asian markets boosted again after another Chinese rate cut
- The struggle to keep track of Gaza war deaths
- China cuts another key interest rate to boost economy
- Restarting nuclear power plants: the unprecedented gamble in the US
- US state executes man despite conviction doubts
- Asylum seeker lifts South Korea hopes at Homeless World Cup
- Hostages freed in Gaza truce pine for those left behind
- Pope offers refuge to Myanmar's jailed Suu Kyi: report
- Tragic tale of two West Bank teenagers freed in Gaza truce
- US intel warns of Iran threats to assassinate Trump: campaign
- In election, Hollywood is about cash not endorsements
- UK foreign minister Lammy seeks 'strongest position' for Ukraine
- Macron presses Iran president for Lebanon de-escalation
- UNRWA fears new 'tragedy' as Lebanon violence adds strain: chief to AFP
- Russia mulls ban on 'childless propaganda'
- Blackwater founder probed by Venezuela over anti-Maduro campaign
- Crypto CEO and Bankman-Fried ex Caroline Ellison gets two-year sentence
- Hezbollah announces death of commander after strike on south Beirut
- Tatum hungry for more after breakthrough Celtics success
- Sean 'Diddy' Combs sued for alleged 2001 rape
- Biden pleads for democracy in emotional UN farewell
- New York area port prepares for possible US strike disruption
- Rodri 'irreplaceable' but Guardiola confident Man City will still compete
- Brook 'relieved' as maiden ODI hundred sets up first win as England captain
- Dior's arrows and Amazons as Saint Laurent revives its master
- Mbappe strikes again as Madrid hold off Alaves
- Nkunku hits Chelsea hat-trick, Man City edge into League Cup last 16
- Amnesty calls for commission to probe Kenya protest deaths
- Bolivian government rejects Morales ultimatum for cabinet reshuffle
- US Congress calls on Novo Nordisk to lower drug prices
- Stock markets advance on China stimulus
- Russia 'can only be forced into peace," Zelensky tells UN
- Hundred hero Brook keeps England alive in Australia ODI series
- Biden pleads for democracy in final UN address
- Brook's hundred sees England beat Australia in 3rd ODI
- Alarm grows as Israel and Hezbollah exchange intense fire
- NFL legend Favre reveals Parkinson's diagnosis
- Biden urges world to 'stop arming generals' in Sudan
- Defying experts, Trump vows tariff-driven US economic boom
- Stokes open to England white-ball return
- No peak oil demand 'on the horizon', phaseout a 'fantasy': OPEC
- Sri Lanka's new leftist leader dissolves parliament, calls snap polls
- England scrum-half Mitchell to see specialist on neck injury
- Under-pressure Masood to lead Pakistan in England Tests
- Storm Helene on track to hit Florida as major hurricane
Stock markets rise as Fed set to hike rate
Stock markets rose on Tuesday as the US Federal Reserve began a two-day meeting that is expected to conclude with a big rate increase to tame decades-high inflation.
Central banks worldwide are tightening borrowing costs despite concerns such action could hamper financial recovery from the pandemic and even push major economies into recession.
The US central bank is expected to lift borrowing costs by half a percentage point for the first time since 2000.
With the increase widely forecast, investors will be closely looking for clues on the outlook for futures rate rises after consumer prices accelerated to 8.5 percent in March, the highest level in more than 40 years.
"The markets remain edgy, as the Fed is expected to be aggressive in this monetary policy tightening cycle," said analysts at Charles Schwab investment firm.
"Moreover, sentiment continues to be hampered by the ongoing war in Ukraine, the recent jump in interest rates, the continued rally in the US dollar, and the economic impact of the covid lockdowns in China," they wrote.
On Tuesday, the Reserve Bank of Australia lifted interest rates 25 basis points, the first hike since 2010 and by more than expected. Officials also indicated further increases were in the pipeline.
The move sent the Australian dollar briefly rallying more than one percent against the greenback before settling back slightly.
Victoria Scholar, head of investment at Interactive Investor, said the Bank of England is expected to announce another rate hike on Thursday to its highest level since 2009.
Wall Street was up in midday trading, with the Dow Jones Industrial Average 0.7 percent higher, the S&P 500 gaining one percent and the tech-heavy Nasdaq rising by 0.6 percent.
European markets finished higher, with London up 0.2 percent, Paris adding 0.8 percent and Frankfurt gaining 07 percent following sharp losses Monday.
Traders continued to pore over earnings results from some of the world's biggest companies.
US drug maker Pfizer reported a 77-percent jump in first quarter revenue thanks to its Covid vaccine, though it lowered its full-year profit forecast due in part of shifts in foreign exchange.
- Oil down -
British energy giant BP said its decision to pull out of Russia as a result of the war in Ukraine pushed it deep into the red in the first three months of this year.
But its underlying performance was strong thanks to a recent surge in oil and gas prices.
On Tuesday, crude futures declined ahead of a regular meeting this week of OPEC+.
The body comprising the Organization of Petroleum Exporting Countries plus Russia and other oil-producing nations must decide on output policy amid tight supply fears triggered by the Ukraine war.
The European Union is preparing a Russian oil embargo but some countries highly dependent on Moscow's crude are seeking opt-outs from the possible ban.
China's strict Covid lockdown has weighed on crude prices due to concerns about demand in the world's top importer of oil.
- Key figures at around 1600 GMT -
New York - Dow: UP 0.7 percent at 33,306.99 points
London - FTSE 100: UP 0.2 percent at 7,561.33 (close)
Frankfurt - DAX: UP 0.7 percent at 14,039.47 (close)
Paris - CAC 40: UP 0.8 percent at 6,476.18 (close)
EURO STOXX 50: UP 0.8 percent at 3,761.19
Hong Kong - Hang Seng Index: UP 0.1 percent at 21,101.89 (close)
Tokyo - Nikkei 225: Closed for a holiday
Shanghai - Composite: Closed for a holiday
Euro/dollar: UP at $1.0519 from $1.0506 on Monday
Pound/dollar: UP at $1.2498 from $1.2489
Euro/pound: UP at 84.16 pence from 84.09 pence
Dollar/yen: UP at 130.17 yen from 130.16 yen
Brent North Sea crude: DOWN 1.1 percent at $106.37 per barrel
West Texas Intermediate: DOWN 1.3 percent at $103.82 per barrel
A.Gasser--BTB