Positive week for Global Stocks

Global stocks were on course for the best week since January after the Fed raised its benchmark lending rate a quarter point without accelerating the timetable for future hikes. U.S. policy makers’ reticence to speed up tightening is prompting investors to ditch the dollar in favor of higher-yielding currencies, while the most tranquil markets in two years are spurring a hunt for returns in riskier landscapes.

Emerging markets headed toward the best week in eight months even as the global equities rally spurred by the Federal Reserve’s outlook lost momentum. The dollar was poised for its biggest weekly loss since February.

Dutch PM Rutte fought off the challenge of anti-Islam and anti-EU rival Geert Wilders to score an election victory that was hailed across Europe by governments facing a rising wave of nationalism.

The Fed raised rates for the second time in three months on Wednesday as expected but did not flag any plan to accelerate its outlook for monetary tightening.

Basic resource stocks were boosted by a sharp fall in the dollar against major currencies on Wednesday in reaction to the Fed’s rate outlook.

Markets were focused on the G20 gathering of finance ministers and central bankers in the German town of Baden-Baden on Friday and Saturday.

Mark Carney governor of the British Central Bank said that a decade on from the start of the financial crisis, the G20 has made substantial progress in building a financial system that is more resilient and better able to fund households and business in sustainable way. As the global recovery gains strength, now is not the time to risk these hardwon gains.

The eurozone has posted its first trade deficit in the years. Imported goods from the rest of the world surged by 17% year-on-year in January, to €164.5bn, according to Eurostat. Exports rose by 13% to €163.9bn. This left the euro area with a deficit of €600m; the first since January 2014.