Asian and European stocks are trading higher, as investors reacted to central banks in those regions tightening their monetary policies. Authorities are raising the cost of borrowing to keep inflation in check. But they're also doing so to keep up with the US, which is hiking interest rates, making dollar-denominated assets more profitable, and therefore, more attractive to fund managers. Meanwhile, China is moving in the opposite direction. The central bank in Beijing is expected to announce a move to increase the amount of cash circulating in the Chinese economy.

Ryan Payne is the president of Payne Capital Management in New York. He talked about the rally in US stocks on Wall Street overnight, saying it's a signal that prospects for the world's largest economy are brighter than many expect.

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