UK markets rallied as the Bank of England held rates steady, though policymakers signaled potential future hikes if energy-driven inflation persists.
Oil prices surged back above $100 per barrel amid the Middle East war, raising inflation and central bank tightening expectations.
The FTSE 100 climbed 1.2% after the Bank of England held rates, easing fears of aggressive tightening.
The FTSE 250 gained 1.1% on relief that the BoE's stance was not as hawkish as markets priced.
Gold prices increased after the Federal Reserve's rate hike, boosting precious metals miners like Glencore and Rio Tinto.
The Dow Jones opened higher after the Federal Reserve's rate hike reassured investors of inflation-fighting commitment.
The S&P 500 rose 1.1% at the open as markets welcomed the Fed's rate increase.
The Nasdaq Composite climbed 1.5% at the open following the Fed's reassuring commentary.
Glencore was among the biggest risers on the FTSE 100 as gold and commodity prices strengthened.
Rio Tinto rose alongside Glencore, boosted by higher commodity prices and the FTSE 100 rally.
The FTSE 100 climbed 1.2% and the FTSE 250 rose 1.1% after the Bank of England maintained interest rates at 3.75%. While the central bank held steady, Governor Andrew Bailey warned that persistent energy price volatility linked to the Middle East conflict could necessitate future rate hikes to combat inflation, which is projected to hit 4%.
Markets reacted positively to the Bank of England's decision to hold rates steady and its announcement to stop selling long-dated bonds, which eased pressure on the UK bond market.
While rates were held at 3.75%, analysts and policymakers suggest a rate hike is likely in November if energy prices remain elevated and inflation risks persist.