Markets Surge Amid Global Economic Tensions

Global markets experienced mixed movements as European shares climbed and Asian stocks dipped, influenced by U.S. consumer spending data and inflation concerns. The Federal Reserve's interest rate outlook and currency fluctuations further added to market volatility. South Korea's rate cut also impacted the won and investor sentiment.

Global markets witnessed significant shifts on Thursday, as European stocks improved alongside the dollar, while Asian shares faced declines amid thinning trading volumes ahead of the U.S. Thanksgiving holiday. The Stoxx 600 index rose 0.36% after two sessions of losses, while Asia-Pacific equities outside Japan fell by 0.52%.

Data released on Wednesday highlighted increased U.S. consumer spending in October. The Federal Reserve's key inflation measure rose to 2.3%, reducing the likelihood of interest rate cuts next year. Economists still expect the FOMC to lower rates by 25 basis points in December, but persistent inflation poses a challenge.

The currency market also reacted, with the dollar index modestly higher at 106.22. In unexpected news, South Korea's central bank slashed interest rates, affecting the won. Meanwhile, the euro and yen faced fluctuations, as European bond yields offered relief to France amidst budgetary tensions and commodity prices saw slight upticks.

(With inputs from agencies.)