European Shares Rise, Asian Stocks Slip Ahead of U.S. Thanksgiving
By Harry Robertson and Ankur Banerjee
European shares ticked up on Thursday after falling the previous day, while Asian stocks slipped, as trading volumes thinned ahead of the U.S. Thanksgiving holiday.
Europe’s continent-wide index rose 0.48%, rebounding from a 0.75% decline over the previous two sessions. Meanwhile, MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.52% but managed to climb 0.56%.
Although trading in U.S. equities and Treasuries was closed for the holiday, futures for the U.S. were up 0.24% following a 0.38% drop on Wednesday.
European markets saw a boost in tech shares after Bloomberg reported that the Biden administration’s restrictions on Chinese chips might be less severe than anticipated.
Recent data showed an increase in U.S. consumer spending in October, but the Federal Reserve’s preferred measure of inflation rose to 2.3% from 2.1% the previous month. This, along with the potential for higher tariffs on imported goods, could limit the possibility of interest rate cuts next year.
Economist Kristina Clifton at the Commonwealth Bank of Australia stated, “We continue to expect the FOMC to cut the Funds rate by 25 basis points at its December meeting.” However, she noted that solid monthly core inflation figures might challenge the FOMC’s outlook on inflation trends.
The U.S. Dollar Index, which measures the U.S. currency against six counterparts, was 0.1% higher at 106.2 after a 0.7% decline in the previous session.
South Korea’s central bank unexpectedly cut benchmark interest rates for a second consecutive meeting, leading to a weakening of the won. In contrast, the yen was 0.28% lower at 151.52 per dollar, following a rally to a one-month high in the previous session.
Commodities markets saw oil prices rise after Israel reported a breach in its ceasefire with Hezbollah, with futures up 0.37% at $73.1 a barrel. Meanwhile, gold was up 0.14% at $2,639 per ounce, despite heading for a nearly 4% decline in November, its weakest monthly performance in over a year.
In European bond markets, yields fell as prices climbed, providing relief for France’s government, which recently faced higher borrowing costs compared to Germany. French Finance Minister Antoine Armand indicated readiness to make concessions over the budget amid opposition.
Investors awaited inflation data for euro zone countries and German states before whole-bloc figures on Friday. Overall, market movements were influenced by various economic indicators and geopolitical events, shaping the trajectory of global markets.
