SYDNEYLONDON, Dec 15 Reuters Shares and bonds on Friday globally continued to bask in the glow of Wednesday39;s Fed meeting, with MSCI39;s world share index set for a seventh straight winning week, its longest run in six years, and the benchmark 10year Treasury yield trading below 4.

Europe39;s broad STOXX 600 benchmark traded at a 23month high, up 0.2 on the day and SP 50 futures rose 0.25 after the benchmark had reached its highest since January 2022 on Wednesday around 2 off an alltime high. 

MSCI39;s broadest index of AsiaPacific shares outside Japan rose 1.1 and touched its highest since August, lagging global benchmarks because of weakness in China.

Wednesday39;s Federal Reserve meeting continued to underpin stock and bond bulls. At that meeting, the Fed left interest rates unchanged, as expected, but policy makers pencilled in 75 basis points of rate cuts for 2024, and Chair Jerome Powell said the historic tightening of monetary policy was likely over, as inflation falls faster than expected.

Markets have taken that and run with it, pricing in around 150 basis points of Fed cuts next year, along with a similar amount from the European Central Bank, and 110 for the Bank of England, despite rate setters at both European central banks trying to push back against rate cuts at their Thursday meetings.

It was an interesting 24 hours to say the least. The Fed, obviously was more dovish than was expected and the market has been rallying strongly on the back of that…