World stocks surged Wednesday, a day after the Federal Reserve stoked a sharp rally on Wall Street with an unexpectedly steep 50-basis-point cut in its fed funds overnight lending interest rate target.
Shares rose 3.7% in Tokyo and 4% in Hong Kong after the Fed move, which is intended to ensure the economy doesn't succumb to a credit crunch that swept across markets this summer. European stocks showed strong gains as well, with major indices rising 2.3% in the U.K., 2.6% in France and 1.9% in Germany.
The gains come as investors await the latest update on the big U.S. brokerage firms' third-quarter earnings.
is on deck Wednesday morning, a day after
posted stronger-than-expected earnings while failing to completely dispel questions about its exposure to problems in the mortgage unit.
Also Wednesday, Lucky Charms maker
beat fiscal first-quarter earnings expectations by a nickel a share.