LONDON—World stock markets got their foot back on the gas on Thursday as hopes grew that Washington could resolve its debt-ceiling squabbles and a global drop in energy prices tempered deepening fears of “stagflation”.
Europe’s bourses rallied off 2–1/2-month lows as easing oil and gas prices offered relief after a shock 4 percent drop in German industrial production, which highlighted the toxic “stagflation” risk of runaway inflation and moribund growth.
