Global Stocks Reach New Highs Amid Hawkish Fed Remarks

Solid corporate earnings and optimism around a peace deal in the Middle East pushed world stocks to new highs on Wednesday, although momentum cooled as investors digested some tech weakness and hawkish remarks from a Federal Reserve official.

Japan's Nikkei index rose by 3.5%, with European and Canadian markets also reaching new highs. The S&P 500 and Dow outperformed, with six sectors on the S&P 500 rising and five falling.

The dollar dipped to a six-week low, while gold had its best day in six months, rising 4.5% to move further away from the $4,000/oz level. The price increase was driven by a softening dollar and lower bond yields, as well as strong demand from China.