(Bloomberg) — A gauge of global equities held firm after four days of gains, following a recovery fueled by bets that the Federal Reserve will cut interest rates faster than previously thought.
The MSCI All Country World Index was little changed after trimming its drop for November to 0.4% in the prior sessions. The gauge had been down nearly 4% for the month just over a week ago. European and Asian benchmarks posted modest moves, with US markets closed for Thanksgiving. S&P 500 futures were steady.
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In another sign that risk appetite is returning, Bitcoin traded above $91,000 for the first time in a week. Gold fluctuated and the dollar paused a two-day retreat.
The moves in stocks tracked firming expectations for Fed easing, with money markets pricing in roughly an 80% chance of a quarter-point cut next month and leaning toward three more by the end of 2026. A little more than a week ago, traders were projecting three cuts in total. It also signals fresh optimism after worries over stretched tech valuations hammered equities earlier in the month.
“We’re building up for a classic year-end rally,” said Daniel Murray, chief executive officer of EFG Asset Management Switzerland. “Our main scenario is one where actually the macro environment continues to hold up well into 2026, the corporate earnings outlook looks pretty decent and you get the added tailwind of the lagged effect of rate cuts.”
Among the more notable movers on Thursday, Japanese and South Korean equities outperformed their regional peers, with tech shares leading gains in both markets. In Europe, Germany’s DAX index rose 0.3% as Puma SE jumped 13% on takeover interest from multiple bidders.
UK gilts gave back some of Wednesday’s rally that followed the Autumn budget. Chancellor of the Exchequer Rachel Reeves carved out a larger fiscal buffer, which buoyed sentiment, even though the tax-raising steps required cast a shadow over the outlook for economic growth. The pound and FTSE 100 were little changed.
“All told, we think the UK government did what it needed to do to keep UK bond markets on side,” wrote Bill Diviney, head of macro research at ABN AMRO. “While there is naturally some risk to this more backloaded fiscal consolidation round, it comes on top of an already considerable effort.”
Oil prices edged higher as investors assessed the next steps in US-led diplomatic efforts to end the war in Ukraine. Platinum touched its highest level in more than a month, supported by optimism over fresh demand after a Chinese exchange launched a new futures contract.
What Bloomberg Strategists Say…
“Upcoming commentary from the BOE will likely set markets up for a cut next month or at least not stand in the way of it. Thereafter, given the credibility hit the BOE faced in taming rising inflation, it’s likely to stay cautious until data warrants a more neutral policy stance. Some rate-cut bets for 2026 may fade, which could cap upside in gilts.”
— Adam Linton, macro strategist. For full analysis, click here.
Corporate News:
China Vanke Co. was rejected by at least two big local banks as it tried to secure a short-term loan to quell the default fears that have fueled a plunge in its bonds this week, according to people familiar with the matter.
Chinese sports apparel company Anta Sports Products Ltd. is among firms exploring a potential takeover of Puma SE, according to people familiar with the matter.
JPMorgan Chase plans to build a new three-million square feet tower in London that would serve as its principal UK headquarters and could contribute about $13 billion to the local economy over six years, it said in a statement.
A gauge of risk on Oracle Corp.’s debt reached a three-year high in November, and things are only going to get worse in 2026 unless the database giant is able to assuage investor anxiety about a massive AI spending spree, according to Morgan Stanley.
SoftBank Group Corp.’s credit-default swaps climbed to the highest level since April, as investors turned cautious on the tech behemoth’s debt-fueled growth at a time of intensifying global competition.
Some of the main moves in markets:
Stocks
The Stoxx Europe 600 was little changed as of 11:33 a.m. London time
S&P 500 futures were little changed
Nasdaq 100 futures were little changed
Futures on the Dow Jones Industrial Average were little changed
The MSCI Asia Pacific Index rose 0.2%
The MSCI Emerging Markets Index was little changed
Currencies
The Bloomberg Dollar Spot Index was little changed
The euro fell 0.1% to $1.1582
The Japanese yen rose 0.1% to 156.28 per dollar
The offshore yuan fell 0.2% to 7.0811 per dollar
The British pound fell 0.1% to $1.3226
Cryptocurrencies
Bitcoin rose 1.4% to $91,422.68
Ether rose 0.2% to $3,028.26
Bonds
The yield on 10-year Treasuries was little changed at 3.99%
Germany’s 10-year yield advanced one basis point to 2.68%
Britain’s 10-year yield advanced five basis points to 4.47%
Commodities
This story was produced with the assistance of Bloomberg Automation.
