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European stocks perk up as markets sluggish for Thanksgiving

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 vacation.

Europe's continent-wide STOXX 600 index increased 0.48%, after falling 0.75% throughout the previous 2 sessions.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.52%, but Japan's Nikkei climbed up 0.56%.

Trading in U.S. equities and Treasuries was closed, but futures for the U.S. S&P 500 were up 0.24% after the index fell 0.38% on Wednesday.

European markets were improved by a rally in tech shares after Bloomberg reported the Biden administration's curb on Chinese chips might be less severe than expected.

Data on Wednesday showed U.S. customer spending increased in October however the Federal Reserve's preferred measure of inflation ticked approximately 2.3% in October, from 2.1% the previous month.

Together with the prospect of greater tariffs on imported goods, strong costs and inflation might narrow the scope for rate of interest cuts next year.

We continue to expect the FOMC to cut the Funds rate by 25 basis points at its December conference, said economist Kristina Clifton at the Commonwealth Bank of Australia, referring to the United States' rate-setting Federal Free market Committee.

Nevertheless, another strong month-to-month core inflation for November will challenge the FOMC's view that inflation is trending down to 2% per year.

The dollar index, which determines the U.S. currency against six rivals, was 0.1% higher at 106.2 after dropping 0.7%. in the previous session.

Chris Turner, global head of markets at lender ING, stated. Wednesday's fall in the dollar was likely driven in part by. financiers cashing in gains on U.S. stocks and bonds in November. before completion of the month.

Most likely, a few of this activity occurred in the more. liquid markets yesterday than waiting for Thanksgiving-thinned. conditions.

In a surprise move, South Korea's central bank cut criteria. rate of interest for a 2nd successive meeting on Thursday. after inflation slowed more than policymakers predicted. The won. deteriorated after the choice.

The yen was 0.28% lower at 151.52 per dollar after. rallying to a one-month high in the previous session. The Asian. currency is headed for its strongest week since early September. on growing expectations of a rate trek from the Bank of Japan. next month.

The euro was down 0.13% at $1.0552 after increasing. 0.7% in the previous session in the wake of European Central. Bank board member Isabel Schnabel saying that rate cuts should. be gradual and move to neutral, not accommodative, territory.

European bond yields fell as prices climbed. , a welcome bit of respite for France's federal government,. which saw its borrowing expenses rise to their highest over. Germany's given that 2012 on Wednesday.

French Finance Minister Antoine Armand said on Thursday the. federal government was ready to make concessions over its budget plan, which. has actually dealt with extensive opposition from both far-left and far-right. political leaders.

Financiers were viewing inflation data for euro zone. nations and German states trickle in on Thursday before. whole-bloc figures on Friday.

In commodities markets, oil costs ticked up after Israel. said its ceasefire with Hezbollah had actually been breached, with Brent. unrefined futures 0.37% greater at $73.1 a barrel.

Spot gold was up 0.14% at $2,639 per ounce but on. course for a near 4% drop in November, its weakest month-to-month. performance in over a year.

(source: Reuters)