World stocks climb to highest since August
Powell bolsters bets for 50 bps U.S. rate hike this month
Bond markets rally on hopes of lower terminal rates
Dollar sags to lowest since August
China eases some COVID quarantine rules

LONDON, Dec 1 Reuters The bulls were enjoying the good life in Europe on Thursday after the world39;s most influential central banker, Jerome Powell, signalled this year39;s frantic pace of U.S. interest rate hikes could be about to slow.

It was a textbook 39;risk on39; pattern, with both the STOXX 600 and MSCI39;s main world stocks index hitting their highest since August and the previously unstoppable dollar down at a threemonth low. FRX

Rallying bond markets sent borrowing costs lower almost everywhere too , while higher oil and metals prices suggested even commodities markets now hope a less aggressive Federal Reserve will help the spluttering world economy.

It absolutely makes sense, said Unigestion senior portfolio manager Olivier Marciot, saying it was a case of it39;s not so bad any more, so it39;s good.

We have the confirmation that we are not having central banks being ever more hawkish and the confirmation that inflation is starting to slow.

There has now been a more than 17 recovery in European and world stocks and a 7.5 fall in the dollar since the Fed first started to hint at a shift in its view in mid October.

Fed Chair Powell said on Wednesday the U.S. central bank could scale back the pace of interest rates hikes from…