Global Markets Steady Amid Fed Rate Anticipation

European and Asian shares experienced slight gains amid subdued market movements and high U.S. Treasury yields expectations. Investors are considering future Federal Reserve rate cuts, while China's economic efforts face challenges due to potential U.S. trade conflicts and real estate issues. Global markets remain cautious.

European shares made modest gains on Tuesday, with trading actions limited in anticipation of a holiday week. The U.S. dollar remained strong, hovering near a two-year high supported by elevated U.S. Treasury yields. This comes as investors are betting on limited Federal Reserve rate cuts in 2025.

Asian markets also showed gains, notably Chinese stocks, which rose after information implied Beijing's plans to introduce an unprecedented amount of special treasury bonds next year to boost its economic stimulus efforts. Meanwhile, market observers remain skeptical about China's economic future, aggravated by U.S. trade war threats.

In the U.S., anticipation over central bank decisions continued to drive market themes, with markets pricing in moderate Federal Reserve easing for 2025. Commodity prices reflected slight increases, with gold steady at $2,613 per ounce and oil showing upward trends. The dollar index stayed elevated, while the euro and yen weakened slightly.

(With inputs from agencies.)