Dollar Drops as Stocks Nearly Erase November Losses – Asia Market Wrap
Global equities were on the verge of recovering their November losses as surging bets on Federal Reserve interest rate cuts revitalised markets following a selloff triggered by concerns about inflated AI valuations.
On Thursday, the MSCI All Country World Index rose for the fifth consecutive session, reducing its November loss to 0.5%. This follows seven months of continuous advances. Asian stocks, which had a similar run, climbed 0.5% on Thursday, bringing their November losses to 2%. Futures contracts predicted a sluggish start for European stocks, as the US is closed for Thanksgiving.
China’s attention was focused on the property sector after China proposed deferring payments on a local bond, causing some of its notes to fall to record lows. Bitcoin surged above $91,000.
The cross-asset activity indicates cautious optimism in global markets after concerns about tech valuations hammered stocks earlier this month. The potential of a pro-rate-cutting official becoming the next head of the Fed has further boosted sentiment.
Oil fell in the commodities market as investors watched US-led efforts to settle the violence in Ukraine and anticipated an OPEC+ meeting this weekend.
