European stocks and dollar perk up as markets slow for Thanksgiving
Refiles adding 'Global Markets' tag in headline; no changes to text of story
By Harry Robertson, Ankur Banerjee
LONDON/SINGAPORE, Nov 28 (Reuters) -European shares ticked up along with the dollar on Thursday after both fell the previous day, whileAsian stocks slipped, as trading volumes thinned ahead of the U.S. Thanksgiving holiday.
Europe's continent-wide Stoxx 600 index rose 0.36% after falling0.75% acrossthe previous two sessions.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.52%, but Japan's Nikkei .N225 climbed 0.56%.
Trading in U.S. equities and Treasuries was closed, but futures for the U.S. S&P 500 ESc1 were up 0.15% after the index fell 0.38% on Wednesday.
Data on Wednesday showed U.S. consumer spending increased in October but the Federal Reserve's preferred measure of inflation ticked up to 2.3% in October, from 2.1% the previous month.
Together with the prospect of higher tariffs on imported goods, solid spending and inflation could narrow the scope for interest rate cuts next year.
"We continue to expect the FOMC to cut the Funds rate by 25 basis points at its December meeting," said economist Kristina Clifton at the Commonwealth Bank of Australia, referring to the United States'rate-setting Federal Open Market Committee.
"However, another solid monthly core inflation for November will challenge the FOMC's view that inflation is trending down to 2% per year."
The dollar index =USD, which measures the U.S. currency against six rivals, was 0.1%higher at 106.22 after dropping 0.7% in the previous session.
Chris Turner, global head of markets at lender ING, said Wednesday's fall in the dollar was likely driven in part by investors cashing in gains on U.S. stocks and bonds in November before the end of the month.
"Presumably, some of this activity took place in the more liquid markets yesterday than waiting for Thanksgiving-thinned conditions."
In a surprise move, 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 KRW=KFTC weakened after the decision.
The yen JPY=EBS was 0.4%lower at 151.69 per dollar after rallying to a one-month high in the previous session. The Asian currency is headed for its strongest week since early September on growing expectations of a rate hike from the Bank of Japan next month.
The euro EUR=EBS 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. FRX/
European bond yields dippedas prices climbed DE10YT=RR, FR10YT=RR, a welcome bit of respite for France's government, which saw its borrowing costs rise to their highest over Germany's since 2012 on Wednesday.
French Finance Minister Antoine Armand said on Thursday the government was ready to make concessions over its budget, which has faced widespread opposition from both far-left and far-right politicians.
Investors were watching inflation data for euro zone countries and German states trickle in on Thursday before whole-bloc figures on Friday.
In commodities markets, oil prices ticked up afterIsrael said its ceasefire with Hezbollah had been breached, withBrent crude futures LCOc1 0.65% higherat $73.3a barrel.
Spot gold XAU= was up 0.37% at $2,645 per ounce but on course for a near 4% drop in November, its weakest monthly performance in over a year. GOL/
World FX rates YTD http://tmsnrt.rs/2egbfVh
Asian stock markets https://tmsnrt.rs/2zpUAr4
U.S. stocks have rallied ahead of Europe https://reut.rs/3Vc8WoC
Reporting by Harry Robertson in London and Ankur Banerjee in Singapore. Editing by Kim Coghill, Mark Potter and Gareth Jones
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