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Stock markets globally were starting November on the front foot, with Asian markets and London mining shares boosted by speculation that China is considering ending its zero-Covid policy.
The FTSE 100 index opened up 103.79 points, 1.5%, at 7,198.32. The FTSE 250 was up 258.82 points, 1.5%, at 18,148.75, and the AIM All-Share rose 7.10 points, 0.9%, at 813.23.
The Cboe UK 100 opened up 1.3% at 719.48, the Cboe UK 250 added 1.3% at 15,564.86, and the Cboe Small Companies opened down 0.4 of a point at 12,335.17.
In European equities on Tuesday, the CAC 40 in Paris opened up 1.6%, while the DAX 40 in Frankfurt was up 1.0%.
In Asia, the Shanghai Composite closed up 2.6%, and the Hang Seng index in Hong Kong gained 5.1%. The Japanese Nikkei 225 index closed up 0.3% in Tokyo. The S&P/ASX 200 stock index in Sydney closed up 1.7%.
The rally in Shanghai and Hong Kong followed unconfirmed posts on Chinese social media saying officials were putting together a committee to discuss how to move the country away from its economically damaging zero-Covid policy, AFP reported.
The dollar pulled back early Tuesday in London, as the two-day meeting of the US Federal Open Market Committee starts on Tuesday.
Sterling was quoted at $1.1531, higher than $1.1500 at the London equities close on Monday. The euro traded at $0.9933 early Tuesday, up from $0.9885 late Monday. Against the yen, the dollar was quoted at JP¥147.76, down versus JP¥148.61.
While a 75 basis hike point is widely expected to be announced on Wednesday, analysts will be watching closely for any hints as to the central bank's thinking about future rate hikes.
"The Fed starts its two-day meeting, and expectations are mixed. The Fed could call the end of the aggressive rate tightening and signal slower rate hikes to enter the final phase of policy tightening, before pausing," said Swissquote Bank's Ipek Ozkardeskaya.
"But there is a risk in there. The risk is, because investors are waiting in ambush for the Fed to soften its tone, any sign of a less hawkish Fed could send both the bond and equity markets rallying. And that‘