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NEW YORK (Reuters) - A global equities gauge rose on Wednesday for a third day in four as bets on more economic stimulus overcame, for now, worries over the rising prospect of a global recession.
Strong earnings in the United States and the report of talks on a mega merger in European autos triggered gains in stocks, and the improved risk sentiment drove safe-haven yields higher while the yen and gold edged lower.
Traders expect that the Federal Reserve’s annual Jackson Hole symposium and a Group of Seven summit this weekend will shed light on the next steps policymakers will take to support economic growth.
Much depends on what the Fed does with U.S. interest rates, making markets hyper-sensitive to the minutes of its latest meeting, due within the hour. That recent meeting ended with what traders dubbed a “hawkish rate cut,” missing expectations for an even more supportive Fed.
“Today’s release of the FOMC minutes could show how the risks related to global trade could warrant further rate cuts,” said Edward Moya, senior market analyst at OANDA, pointing to the importance of Fed Chairman Jay Powell’s speech in Jackson Hole expected Friday.
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