Stocks rise, dollar eases before Fed rate decision

Stock markets rose and the dollar dipped on Wednesday, with all eyes on the size of the Federal Reserve's latest US interest-rate hike to cool inflation. Analysts expect the Fed to raise its rate by 25 basis points, which would be less aggressive than December's half-point increase, as inflation in major economies starts to ease from the highest levels in decades. The European Central Bank and Bank of England announce their latest interest-rate decisions on Thursday. Ahead of the European announcements, data on Wednesday showed the eurozone's annual inflation rate slowing further. A lot is riding on the Fed dialling back the pace of rate hikes to 25 basis points and there will also be plenty of attention on the surrounding messaging from chair Jerome Powell and his colleagues," said AJ Bell investment director Russ Mould. "Helping the market's mood... was data that revealed slowing US wage growth, another signal that inflationary pressures have peaked." Asia's main stock markets closed higher on Wednesday, rebounding from two days of losses, while European indices edged higher approaching the half-way stage on Wednesday. The gains will provide some relief to investors after...