Global Stocks Hold Ground as Rate-Cut Optimism Fuels Market Recovery – Europe Market Wrap
A global equity gauge steadied after a four-session climb, extending a rebound driven by mounting expectations that the Federal Reserve will move more aggressively to lower interest rates.
The MSCI All-Country World Index was largely flat, having pared its November decline to just 0.4% after nearly touching a 4% monthly loss earlier this month. Equity moves across Europe and Asia were subdued, while the US market remained closed for Thanksgiving. Futures tied to the S&P 500 were unchanged. Risk appetite showed additional signs of returning, with Bitcoin climbing above $91,000 for the first time in a week. Gold hovered near recent levels and the dollar paused after a two-day slide.
The equity recovery has mirrored the shift in interest-rate expectations. Money markets now assign roughly an 80% probability to a quarter-point cut next month and anticipate up to three more reductions by the end of 2026. That’s a stark change from just over a week ago, when traders priced in only three cuts total. The shift reflects renewed confidence after concerns about overheated tech valuations triggered sharp selling earlier in November.
Japan and South Korea outperformed most other Asian markets on Thursday, with technology names driving the advance in both countries. In Europe, Germany’s DAX edged up 0.2% as Puma jumped 14% amid takeover interest from several potential buyers.
UK bonds and the pound eased after their strong post-budget rally on Wednesday. Chancellor Rachel Reeves unveiled a larger-than-expected fiscal cushion, which initially lifted sentiment even though a range of tax increases clouded the outlook for longer-term growth.
Oil prices were steady as investors evaluated the next phase of US-led diplomatic efforts aimed at ending the war in Ukraine, while also holding back from major positions ahead of this weekend’s OPEC+ gathering. Platinum reached its highest level in over a month, supported by expectations of fresh demand following the launch of a new futures contract on a Chinese exchange.
