Central Banks Spark Market Moves amidst Global Monetary Shift

Markets reacted positively to anticipated interest rate cuts by global central banks, with European equities and the euro gaining amid a busy day for monetary policy decisions. Investors were buoyed by U.S. inflation data, while the Swiss National Bank's rate cut weakened the franc. Overriding sentiment includes a potential Fed rate cut.

The global equity markets received a lift on Thursday ahead of key central bank monetary decisions, notably from the European Central Bank. The euro's ascent was mirrored by a steadying of investor sentiment underpinned by U.S. inflation data pointing to an expected Federal Reserve interest rate reduction next week.

In Switzerland, an unprecedented half-point rate cut by the SNB in nearly a decade significantly impacted the franc, which weakened against major currencies. Meanwhile, the dollar adjusted its position against a basket of currencies, reflecting profit-taking before inflation data conformation.

Notably, the tech-driven Nasdaq index surged ahead of its peers, closing above 20,000 for the first time. Analysts suggest the U.S. consumer price index report has removed one of the final barriers to an economic rebound, fuelling a market-ready atmosphere for year-end returns.

(With inputs from agencies.)