Fed helps world stocks jump to highest since April 2022
ECB, BOE, SNB all hold rate meetings later in Europe
Dollar index briefly sinks to lowest level since August

LONDON, Dec 14 Reuters Stock markets sprinted to their highest in over a year and a half and borrowing costs and the dollar tumbled on Thursday, as traders bet that Europe39;s top central banks would join the U.S. Fed later in signalling interest rate cuts for next year.

Switzerland39;s central bank was already out the blocks pointing to subdued global growth and it was a fast start for Europe39;s STOXX 600 which leapt 1.6 to its highest in almost 2 years ahead of Bank of England and European Central Bank decisions later.

MSCI39;s 47country world stocks index was adding to its stellar 13 gain over the last 112 months, while bond market borrowing costs were in a tailspin, with German bund and U.S. Treasury yields at nine and fourmonth lows respectively.

It was the reaction to the Fed on Wednesday where Jerome Powell had said its historic tightening of monetary policy was likely to be over with inflation now falling faster than expected.

A nearunanimous 17 of its 19 policymakers had projected the Fed funds rates would be lower in a year39;s time with the median forecast showing a threequarters of a percentage point drop from the current 5.255.50 range.

That provided a surprise and left markets betting that cuts could start as soon as March and might end up being double the amount as the Fed39;s…