LONDON—World stocks rallied on Tuesday, as traders held on to hope that interest rates will soon peak and come down later this year, even if the latest U.S. jobs data supported the case for a May hike from the Federal Reserve.
Those hopes were fanned by an analysis in the International Monetary Fund’s latest World Economic Outlook that suggested the current high interest rates “are likely to be temporary” and predicted that, once inflation was brought under control, rates in advanced economies would eventually return to pre-pandemic levels.
