World stocks hit fresh two-year highs before Fed

Published 11/03/2010, 05:24 AM
Updated 11/03/2010, 05:28 AM

LONDON, Nov 3 (Reuters) - World stocks hit a fresh two-year high on Wednesday while emerging equities rose to their highest level since mid-2008 as investors anticipated further Federal Reserve monetary easing would support the global economy.

The Fed announces its monetary policy decision later on Wednesday. Markets are generally priced for the Fed to initially commit to buying at least $500 billion in Treasuries over five months.

MSCI all-country world equity index rose as high as 320.05, bringing gains this year to nearly seven percent.

The MSCI emerging equities index hit its highest since June 2008, as the prospect of further quantitative easing drives investors towards higher-yielding assets.

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