Global Market Sways Amid Economic Data and Political Uncertainty

The global equities market softened as investors grappled with U.S. economic data and policy uncertainties, including new tariffs. U.S. consumer spending increased, hinting at stable economic growth, but inflation concerns persist. Investors anticipate a Fed rate cut in December, while oil prices held steady.

On Wednesday, global equities experienced a downturn as market participants processed recent U.S. economic data alongside potential trade policy shifts under the incoming administration. The dollar also saw a dip, while Treasury yields fell, reflecting investor caution.

U.S. consumer spending showed fresh strength in October, signaling robust economic growth, yet inflation worries linger. Core inflation grew slightly, which, in turn, sparked predictions of a Federal Reserve rate cut next month. Even amidst these economic indicators, Wall Street's main indexes registered notable declines.

Concerns over new trade tariffs further compounded market volatility. President-elect Trump's proposed tariffs on Mexico, Canada, and China caused investor unease, with threats of retaliation from affected nations. This uncertainty, coupled with the Thanksgiving holiday, resulted in lower market liquidity and increased speculation.

(With inputs from agencies.)