MSCI AC World index up 0.5
UK inflation falls to 4.6 in October
China39;s factory output, consumption beat forecasts
Fed funds futures price in rate cuts by May

MILAN, Nov 15 Reuters World shares extended gains on Wednesday and the dollar nursed its losses as expectations of an end to a global rate hike cycle spurred on investors following benign inflation readings in the United States and across Europe.

The MSCI world equity index, which tracks shares in 49 countries, rose 0.5 to its highest since midSeptember, following a positive session in Europe and a rally across Asia, aided by a report of stimulus in China.

The panEuropean STOXX 600 index gained 0.6 after data showed British inflation cooled more than forecast in October, hitting sterling and reinforcing bets the Bank of England will be cutting rates by the middle of 2024.

Good weather seems to be back. The market is starting to price in the possibility of rate cuts in the United States and also in Europe, said Carlo Franchini, head of institutional clients at Banca Ifigest in Milan.

I think the equity rally will continue into 2024 and so will bonds of course, subject to the international picture that remains complicated with the war in Ukraine, the Middle East and trade tensions with China, he added.

The British consumer price index rose by 4.6 in the 12 months to October, slowing from September39;s 6.7 increase, the Office for National Statistics said. Inflation in Italy and France also receded to an…