Markets trim bets on Dec, Jan Fed rate hikes
Markets now see rate cuts beginning June 2024
Bank of England meets; Apple results due later in the day

LONDON, Nov 2 Reuters European shares and bonds extended a global rally on Thursday as a noncommittal Federal Reserve chief had traders doubling down on bets that U.S. interest rates the main driver of world borrowing costs have finally peaked.

With expectations that the Bank of England might send a similar signal in a few hours , Europe39;s STOXX 600 and London39;s FTSE were both up over 1 early on, with the former on course for its first fourday run of gains since July.

Shorterterm bond market yields were at twomonth lows and the dollar was backpedalling in the foreign exchange markets, much to the relief of the Japanese yen and the dozens of emerging market currencies that have been suffering this year. FRX

Fed Chair Jerome Powell39;s comments that its aggressive 20month run of rate increases was likely to slow the economy after what he had described as the outsized jump in Q3 U.S. GDP, was the main takeaway for many analysts, although he had been careful to keep the door open to another hike if needed.

A lot of things went right for the rates market yesterday, Jefferies chief European economist Mohit Kumar said, adding that today39;s focus would be on the Bank of England and U.S. unemployment claims and factory orders data.

Sterling crept 0.2 higher to 1.2173 but slipped to 87.14 per euro as dealers waited…