Global stocks rose yesterday and were set for their best week in six years as strong corporate earnings offset concerns about rising inflation and interest rates, while the US dollar edged higher from a three-year low against major currencies.

US Treasury prices rose as investors bought back bonds after a sell-off earlier in the week as investor jitters over rising inflation raised the possibility the Federal Reserve may hike interest rates at a faster pace than expected this year.

Analysts continued to underestimate the pace of global growth, which has led more companies to meet or beat analysts’ result expectations than in any quarter in 20 years, according to calculations by Credit Suisse.

Fourth-quarter earnings for European companies in the STOXX 600 index are expected to increase 14.6 per cent from a year ago, while the blended earnings growth estimate for the S&P 500 is 15 per cent, Thomson Reuters I/B/E/S data show.

MSCI’s index of stock markets across the globe gained 0.54 per cent, while the pan-European FTSEurofirst 300 index of leading regional shares rose 1.11 percent to a preliminary close of 1,491.90.

On Wall Street, the Dow Jones Industrial Average rose 140.69 points, or 0.56 per cent, to 25,341.06. The S&P 500 gained 13.44 points, or 0.49 per cent, to 2,744.64 and the Nasdaq Composite added 24.82 points, or 0.34 per cent, to 7,281.25.

Both the S&P 500 and Dow indexes have gained 4.8 per cent in the past four sessions, putting the S&P on track for its best week since January 2013 and the Dow’s best since November 2016.

The Nasdaq’s 6 per cent gain since Monday has set it on course for its strongest week since December 2011.

Benchmark 10-year US Treasury notes rose 9/32 in price to push their yield down to 2.8604 per cent.

The dollar rose on the day but still remained on track to record its biggest weekly loss in nine months.

Oil prices rose slightly, as the rebound in the global equities market and the dollar’s recent weakness supported their recovery from last week’s slide.

United States West Texas Intermediate crude for March delivery rose 47 cents at $61.81 a barrel. Brent rose 75 cents to $65.08.

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