A relief rally in global shares entered a second day on Friday and the dollar dipped as investors bet that peaking U.S. inflation will prompt the Federal Reserve to ease the pace of interest rate hikes, Reuters reported.
Oil prices jumped after health authorities in top global crude importer China eased some of the country's heavy COVID curbs.
The S&P 500 (.SPX) and Nasdaq (.IXIC) racked up their biggest daily percentage gains in over 2-1/2 years on Thursday after U.S. data showed prices rose less than expected in October.
On Friday, the MSCI all-country stock index (.MIWD00000PUS) was up 1%, taking it back to its highest levels since mid-September.
In Europe, the STOXX (.STOXX) index of 600 companies gained 0.6%, building on its 2.8% leap on Thursday to an 11-week closing high.
"You have got a number of Fed speakers starting to call for a step down and markets are running with that, pricing in some sort of pivot, but that is not going to happen in the short term," said Mike Hewson, chief markets analyst at CMC Markets.
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