Markets jump as Fed rate hike expectations tumble

Markets rallied strongly on Thursday as expectations for a rate hike in 2015 by the Federal Reserve receded.

The MSCI All-Country World Index rose 1.4 percent, the S&P 500 jumped 1.5 percent, as did the STOXX Europe 600, and the MSCI Asia Pacific Index surged 1.9 percent.

The probability of a Fed interest rate increase by its December policy meeting has dropped to 30 percent from 70 percent at the start of August, according to futures data compiled by Bloomberg.

Despite that, yields on US 10-year notes rose five basis points to 2.02 percent on Thursday.