Stocks extend global rally as US inflation reinforces rate hopes



Equities surged Wednesday and the dollar struggled after slower-than-forecast US inflation was seen as all but putting to bed any chance of another interest rate hike, even allowing traders to bet on a series of cuts in the new year.

Investors built on a strong performance on Wall Street -- where US Treasury yields also sank -- fuelled by a sense of relief sweeping through markets that more than a year of painful tightening may have finally come to an end.

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