European shares rose on Thursday after falling the previous day, while Asian stocks slipped, as trading volumes thinned ahead of the US Thanksgiving holiday. Europe’s STOXX 600 index rose 0.48% after falling 0.75% across the previous two sessions. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.52%.
Trading in US equities and Treasuries was closed, but futures for the S&P 500 index were up 0.24% after the index fell 0.38% on Wednesday. European markets were boosted by a rally in tech shares after Bloomberg reported the Biden administration’s curb on Chinese chips could be less severe than expected.
Data on Wednesday showed US consumer spending increased in October, but the Federal Reserve’s preferred measure of inflation ticked up to 2.3% in October. Solid spending and inflation could narrow the scope for interest rate cuts next year.
The US dollar index was 0.1% higher at 106.2 after dropping 0.7% in the previous session. Chris Turner, global head of markets at ING, said Wednesday’s fall in the dollar was likely driven by investors cashing in gains on US stocks and bonds in November before the end of the month.
In Asia, South Korea’s central bank cut benchmark interest rates for a second consecutive meeting on Thursday after inflation slowed more than policymakers predicted. The won weakened after the decision. The yen was 0.28% lower at 151.52 per dollar after rallying to a one-month high in the previous session.
The euro was down 0.13% at $1.0552 after rising 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.
In commodities markets, oil prices ticked up after Israel said its ceasefire with Hezbollah had been breached, with Brent crude futures 0.37% higher at $73.1 a barrel. Gold was up 0.14% at $2,639 per ounce but on course for a near 4% drop in November, its weakest monthly performance in over a year.
