World Shares Hit 3-week High on Easing Recession Fears

A man wearing a protective mask amid the coronavirus disease (COVID-19) outbreak, looks at a board displaying the Japanese yen exchange rate against the U.S. dollar outside a brokerage in Tokyo, Japan, on June 16, 2022. Kim Kyung-Hoon/Reuters

LONDON/BEIJING—World shares hit a three-week high on Wednesday as strong U.S. corporate earnings and the expected resumption of Russian gas supply to Europe allayed fears of a recession, though the dollar hovered near two-week lows on lower U.S. rate hike expectations.

Markets still expect a large 75-basis-point interest rate rise from the U.S. Federal Reserve next week to rein in white-hot inflation. But this represents a rowback from previous expectations of 100 bps.