European markets saw a rise in trading on Thursday, as European stocks and U.S. futures rebounded after a strong sell-off the previous day, while the dollar weakened against major currencies like the euro, yen, and pound sterling.
The European STOXX 600 index gained 0.57%, after three consecutive sessions of losses, totaling about a 1.2% drop. Meanwhile, the UK’s FTSE 100 index rose by 0.78%, and Germany’s DAX index increased by 0.65%.
On the other hand, Nasdaq futures climbed by 0.73%, driven by a strong surge in Tesla’s stock, which jumped 12% after the company announced robust third-quarter results and analysts predicted a 20-30% increase in sales next year. Additionally, S&P 500 futures gained 0.41%, following a 0.9% decline in the index on Wednesday.
In Asian markets, Japan’s Nikkei index rose slightly by 0.1%, while Chinese markets retreated. Hong Kong’s Hang Seng index and Chinese blue-chip stocks both dropped more than 1%, following the U.S. market’s performance the day before.
In currency markets, the dollar index fell by 0.23%, as major currencies like the euro, pound sterling, and Japanese yen rose. The dollar index, which measures the U.S. dollar against six major currencies, reached a three-month high of 105.47 on Wednesday.
This performance is attributed to a combination of strong U.S. data and statements from Federal Reserve officials, which dampened expectations of steep interest rate cuts in the coming months.
The euro increased by 0.14% to $1.0797, rebounding from a three-month low recorded on Wednesday. This rise was supported by better-than-expected data from Germany’s Purchasing Managers’ Index (PMI), which added some optimism for the European currency. However, gains were limited due to weaker-than-expected eurozone-wide PMI data.
In the UK, the pound sterling climbed 0.31% to $1.2963, supported by rising British government bond yields.
As for the Japanese yen, the currency rose 0.5% against the dollar, reaching 152 yen, following a sharp drop in recent days.
In bond markets, U.S. 10-year Treasury yields fell by around 5 basis points to 4.196%, pulling back after hitting a three-month high of 4.26% the day before.
However, strong economic data continues to prompt investors to question whether the Federal Reserve can implement significant rate cuts in its two remaining meetings this year. Current market expectations suggest the possibility of a 40-basis-point rate cut by the end of the year.
In oil markets, prices recovered slightly after falling due to a significant build in U.S. crude inventories. Brent crude futures rose 1.61% to $76.17 per barrel.
