Sharjah 24 – AFP: Stock markets and oil prices rallied Friday, with investors largely pricing in more interest rate hikes aimed at taming runaway inflation.

The dollar slid one percent versus the pound and euro after recent hefty gains.

London's stock market jumped more than 1.5 percent in morning deals, mirroring advances in Paris and Frankfurt, while the British capital's exchange mourned the death of Queen Elizabeth II.

The LSE is expected to shut on the day of the queen's funeral following her death on Thursday.

"Markets are being very British about the whole thing, carrying on in a fashion that I suspect she would have approved of," said IG analyst Chris Beauchamp.