Global equity markets rose and bond prices eased yesterday on solid corporate earnings on both sides of the Atlantic and an upbeat US consumer confidence report that more than made up for weak American housing and indus-trial data.
Outside of equities, market moves were muted on the first day of a two-day Federal Reserve meeting that will likely see the US central bank reinforce its stated willingness to wait a long while before hiking interest rates.
The Fed is also expected to announce the end of its massive bond-buying stimulus, known as quantitative easing.
The dollar index pared losses after the Conference Board reported US consumer confidence was at its highest in seven years in October, reducing worries over disappointing data on domestic home prices and durable goods orders.
Major US stock indexes picked up steam on the consumer senti-ment report and further data showing corporate earnings are beating expectations at a higher rate than recent quarters.
With 245 companies in the S&P 500 having reported earnings so far in the third quarter, 73.5 per cent have beat analyst expectations, according to Thomson Reuters. Over the past four quarters, 67 per cent of companies have beat estimates.
In Europe about a quarter of companies listed on the STOXX Europe 600 benchmark have reported results so far, with 66 per cent beating profit forecasts, Thomson Reuters data show.
MSCI’s all-country world stock index rose 0.75 per cent, while the pan-European FTSEurofirst 300 index of leading companies closed up 0.92 per cent at 1,317.09
On Wall Street, the Dow Jones industrial average rose 70.6 points, or 0.42 per cent, to 16,888.54.
The S&P 500 gained 10.55 points, or 0.54 per cent, to 1,972.18 and the Nasdaq Composite added 46.55 points, or 1.04 per cent, to 4,532.48.
The dollar index, which measures the greenback against a basket of six currencies, was last down 0.14 per cent at 85.379.
The dollar weakened against the euro, with the euro zone currency last at $1.2741, up 0.35 per cent on the day. The greenback briefly turned negative against the yen on the weaker US data but regained some of its earlier rise and was last up 0.24 per cent at 108.07 yen. European government bond yields were broadly unchanged ahead of the Fed's latest policy announcement.
US Treasuries prices eased on the rally in global equity markets and as investors awaited the results of the Fed meeting.
The 10-year Treasury notes fell 6/32 in price to yield 2.2800 per cent.
Brent crude oil steadied around $86 a barrel as the rally in European equities and a fall in the dollar offset the weak US data.
Brent for December was up six cents at $85.89 a barrel while US December crude was down one cent at $80.99.