Investors betting on an easing of sanctions in China and hopes the US central bank will slow interest rate hikes have fueled a surge in equities and a weakening dollar.
Risky assets appear to be the pick ahead of the US Congress election, while markets are seen shrugging off weak Chinese import and export data and Thursday's expected high consumer price index (CPI) reading.
As a result, Wall Street ended the trading session with the Dow Jones Industrial up 1.31%, the S&P 500 up 0.96% and the Nasdaq Composite up 0.85%.
Europe's STOXX 600 index jumped 0.33% and MSCI's gauge of global shares rose 1.14%.
Asian equity movements this morning showed a positive trend with Japan's Nikkei 225 up 0.71%, Topix up 0.69%, South Korea's Kospi up 0.68% and Australia's S&P/ASX 200 up 0.34%.
Commenting on the market situation is Convera's senior analyst, Joe Manimbo, that despite the US election factor, investors are actually expecting weak economic data to slow down the tightening policy.
He added, the market really expects the Federal Reserve (Fed) to slow down rate hikes including risking slightly weaker US economic growth to give room for changes to the central bank's stance.
In addition, he also cited the weak October jobs report could be a downward factor for inflation and indirectly increase investors' appetite for risky assets in the short term.
In the meantime, Tradition London strategist Stephane Ekolo said the market was looking for reasons to buy in risky assets including speculation of an easing of restrictions in China despite Beijing's health officials denying it.
It should be noted that speculation about the easing of sanctions in China had pushed the dollar lower at the end of last week's trading session and catalyzed a surge in equities.
