Global markets were mixed on Thursday, with Wall Street steady as softer labour data reinforced expectations of a December Fed rate cut. European equities advanced on corporate updates and renewed Ukraine diplomacy, while Asia traded unevenly amid weak China data and caution ahead of upcoming central-bank decisions.
US stocks were little changed on Thursday as investors grew more confident the Federal Reserve will deliver a December rate cut following further signs of labour-market softening. The DOW remained flat while the S&P 500 and NASDAQ gained +0.1%. Challenger figures showed corporate layoffs accelerated toward their highest annual total in three years, while ADP’s unexpected slump in private payrolls and a sharp drop in jobless claims to their lowest level since 2022 underscored the conflicting picture. Traders nevertheless maintained expectations for a quarter-point cut next week, with markets pricing an 87% probability. Meta gained +4.0% after reports of potential deep cuts to its metaverse division, despite news of an EU antitrust probe into its AI-enabled messaging features, while Salesforce climbed +3.0% on a stronger revenue outlook. The US two-year yield and 10-year yield each rose +4bp to 3.525% and 4.100% respectively.
European stocks finished higher on Thursday as investors monitored renewed diplomatic efforts over Ukraine and assessed corporate updates across the region. The STOXX 600 rose +0.5%, with Germany’s DAX up +0.8%, France’s CAC 40 gaining +0.4%, and the UK’s FTSE 100 rising +0.2%. Autos outperformed as Stellantis climbed +3.6% after a major broker upgraded the stock to Buy and flagged an ‘American comeback’, while Inditex extended its strong run with a further +2.7% rise. Geopolitical focus remained on Ukraine peace talks after inconclusive meetings in Moscow, with discussions set to continue in Miami as President Trump described negotiations as ‘reasonably good’ but acknowledged that ‘it takes two to tango.’
Asian stocks ended mixed on Thursday as renewed concerns over softer AI demand and upcoming central-bank decisions kept investors cautious. China’s Shanghai Composite finished down -0.1% amid worries over slowing services growth and a prolonged property slump, while Hong Kong’s Hang Seng rose +0.7%. Japan’s Nikkei 225 jumped +2.3% as chipmakers rallied on reports Nvidia’s CEO met President Trump to discuss export controls, while a 30-year government-bond auction drew its strongest demand since 2019, offering relief as the market braces for a potential rate hike. South Korea’s Kospi slipped -0.2% as chipmakers retreated on stretched-valuation concerns, though Hyundai Motor advanced +6.4% after the US confirmed the tariff cut. Australia’s ASX 200 gained +0.3% as firmer copper prices lifted miners and strong household spending reinforced expectations of higher rates for longer, supporting financials while REITs lagged. New Zealand’s NZX 50 fell -0.5%, as Vital Healthcare (-4.5%) and Gentrack (-3.0%) declined.
WTI crude rose +1.4% to US$59.80/bbl, gold inched up +0.2% to US$4,216.05/oz, and iron ore gained +0.4% to US$107.77/MT.