Stocks surge, dollar sags as investors digest Fed, Evergrande

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Stocks surge, dollar sags as investors digest Fed, Evergrande
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World stock markets rallied on Thursday and the U.S. dollar retreated from one-month highs as worries faded about contagion from China Evergrande and as investors digested the Federal Reserve's plans for reining in U.S. stimulus.

MSCI's gauge of stocks across the globe

jumped 1.01%, its biggest percentage rise in a month and for a third straight session of gains that brought it all the way back from Monday, when it posted its biggest percentage drop in two months after fears linked to debt-laden property group Evergrande. It was a case of “unwind of the fear from what happened in China. Markets got over-sold and pessimistic very quickly and then you have basically seen a buy-the-dip mentality,” said Keith Lerner, co-chief investment officer at Truist Advisory Services.

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