LONDON: World stocks mostly rose Tuesday as investors awaited the outcome of the US midterm elections and the Federal Reserve's decision on how much it will pump into the US economy to shore up the recovery.
In Europe, the FTSE 100 index of leading British shares was up 43.86 points, or 0.8 percent, at 5,738.48, while Germany's DAX rose 19.77 points, or 0.3 percent, to 6,624.63. The CAC-40 in France was 5.93 points, or 0.2 percent, higher at 3,847.04.
Wall Street was poised for modest gains later _ Dow futures were up 22 points, or 0.2 percent, at 11,112 while the broader Standard & Poor's 500 futures rose 4.1 points, or 0.4 percent, to 1,187.20.
Stocks have been fairly buoyant so far this week, especially after strong manufacturing surveys in the world's two biggest economies _ the US and China _ boosted hopes about the pace of the global recovery.
However, the forecast-busting report from the Institute for Supply Management has not altered expectations that the Fed will ease monetary policy further on Wednesday given subdued US inflation and high unemployment.
Though figures last week showed the US economy grew at a slightly faster than anticipated annualized rate of 2 percent in the third quarter, that is still not enough to bring down unemployment, which is hovering near 10 percent to the frustration of the Obama administration .
The consensus in the markets is that the central bank will announce monthly asset purchases of around $100 billion a month over the next six months at the conclusion of its two-day meeting on Wednesday.
Before the Fed statement, the markets will have the results of the Congressional elections in the US to digest.
If opinion polls are correct, President Barack Obama will have to work with a Republican-dominated House of Representatives at the very least. Many think that's a recipe for policy inaction over the coming two years before the next presidential elections, meaning the Fed will have to play an even more crucial role in sustaining the US economy.
In Europe, the FTSE 100 index of leading British shares was up 43.86 points, or 0.8 percent, at 5,738.48, while Germany's DAX rose 19.77 points, or 0.3 percent, to 6,624.63. The CAC-40 in France was 5.93 points, or 0.2 percent, higher at 3,847.04.
Wall Street was poised for modest gains later _ Dow futures were up 22 points, or 0.2 percent, at 11,112 while the broader Standard & Poor's 500 futures rose 4.1 points, or 0.4 percent, to 1,187.20.
Stocks have been fairly buoyant so far this week, especially after strong manufacturing surveys in the world's two biggest economies _ the US and China _ boosted hopes about the pace of the global recovery.
However, the forecast-busting report from the Institute for Supply Management has not altered expectations that the Fed will ease monetary policy further on Wednesday given subdued US inflation and high unemployment.
Though figures last week showed the US economy grew at a slightly faster than anticipated annualized rate of 2 percent in the third quarter, that is still not enough to bring down unemployment, which is hovering near 10 percent to the frustration of the Obama administration .
The consensus in the markets is that the central bank will announce monthly asset purchases of around $100 billion a month over the next six months at the conclusion of its two-day meeting on Wednesday.
Before the Fed statement, the markets will have the results of the Congressional elections in the US to digest.
If opinion polls are correct, President Barack Obama will have to work with a Republican-dominated House of Representatives at the very least. Many think that's a recipe for policy inaction over the coming two years before the next presidential elections, meaning the Fed will have to play an even more crucial role in sustaining the US economy.
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