World stocks at 5-week high, earnings in the spotlight

Reuters, London :
World stocks scaled a five-week high on Wednesday, lifted by growing hopes that the pace of US interest rate hikes could soon start to slow.
Wall Street stocks futures fell, pointing to a weak open later on, after Google-owner Alphabet posted softer-than-expected ad sales after Tuesday’s close and Microsoft missed expected revenue forecasts.
But European shares headed higher (.STOXX), having opened softer, drawing some comfort from upbeat bank earnings. Deutsche Bank (DBKGn.DE) posted a better-than-expected jump in third-quarter profit, while British bank Barclays (BARC.L) too beat profit forecasts on a trading boom.
MSCI’s World Stock Index (.MIWO00000PUS) touched a five-week high, while Asian shares rallied.
Although the US Federal Reserve is widely expected to deliver another 75 basis point rate hike at its November meeting, a view that the central bank could then start to slow its aggressive tightening cycle has lifted sentiment in world share markets and taken the edge off a dollar rally.