Stocks Rally as Earnings, Rate Bets Lift Optimism: Markets Wrap

Global stocks rallied as strong earnings and optimism over Federal Reserve interest-rate cuts reignited risk appetite.

Europe’s Stoxx 600 climbed as LVMH jumped 13% on an unexpected return to growth, sparking a surge in luxury shares. Asia’s benchmark notched its biggest intraday gain in two months after Fed Chair Jerome Powell’s labor-market remarks bolstered bets for an October rate cut. S&P 500 futures added 0.4%.

The offshore yuan gained as China boosted its currency defense amid the ongoing trade spat. The move lifted Asian peers and weighed on the dollar, with a steady yuan aiding Beijing’s bid to internationalize the ...