BEIJING - Global stock markets mostly rallied on Wednesday as investors were buoyed by optimism over China's reopening and upcoming data expected to show a further slowdown in US inflation.
Analysts have also cited a better outlook on the European economy, with more temperate weather easing worries of an energy shock following policy actions designed to minimize dependence on Russia.
"An upside bias is winning out thus far based on a prevailing view that weakening economic activity and fading inflation will help the Fed realize that it does not need to raise rates much further," market analyst Patrick O'Hare at Briefing.com said.
After Asian equities mainly fizzed higher, in Europe, Frankfurt closed 1.2 percent up, Paris gained 0.8 percent and London added 0.4 percent.
Wall Street followed that trend to end higher as well, with the S&P 500 winning 1.3 percent.
The consumer price index (CPI), a key gauge of inflation due for release on Thursday, will be closely-watched for its implications on Federal Reserve policy.
Over the past year, the Fed has raised interest rates aggressively to combat decades-high inflation in the United States, though it has since eased its pace of increases.
"The biggest driver here is the inflation expectations. The consensus forecasts are for a slowdown in the CPI," said LBBW's Karl Haeling.
With an overall trend of falling inflation, "that will ultimately ensure that the pace of rate hikes slows," he said.