European stocks were mostly flat or slightly down on Thursday, pausing after three days of increases.
Investors were feeling optimistic earlier in the week due to growing hopes that the Federal Reserve (Fed) might cut interest rates next month, supported by recent economic data suggesting a weaker economy, and positive signs regarding a Russia-Ukraine peace deal. The overall pan-European STOXX 600 index was down 0.2% but is still trading near its highest point for the week.
Key national markets like London’s FTSE 100 and Germany’s DAX were also flat or slightly lower. The biggest news was for the sportswear company Puma, whose shares jumped 13% following reports that the Chinese company Anta Sports Products might be interested in buying them out.
With US markets closed for the Thanksgiving holiday and set for a shorter session on Friday, attention today will also turn to the release of the minutes from the last meeting of the European Central Bank (ECB).
On the FX front, the US dollar was generally losing value on Thursday and was headed for its biggest weekly drop in four months, partly because trading was slow ahead of the Thanksgiving holiday in the US.
Market participants are looking ahead to next year, considering that the US might be the only major economy preparing to cut interest rates.
The Japanese yen gained slightly against the dollar, supported by recent more aggressive statements from officials at the Bank of Japan.
The euro slipped back a little to $1.1590 after briefly reaching a high point for the last week and a half. The Australian dollar continued its gains following a higher-than-expected inflation report on Wednesday, which suggests that interest rate cuts may also be off the table there.
Meanwhile, the Chinese yuan held steady at 7.08 per dollar, thanks to intervention from China’s central bank.
Finally, the British pound rose to its highest level since late October and was on track for its best weekly performance since August, as the recently announced UK budget eased some worries about the country’s finances.
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