Central Banks, Stocks, and Crypto: A Global Market Juggle

European shares declined as traders anticipated key central bank meetings. The U.S. Federal Reserve is expected to cut rates, contrasting with the Bank of Japan's steady stance. U.S. equity markets outperform European ones, with cryptocurrency skyrocketing post-U.S. election amid policy speculation.

On Tuesday, European shares took a downturn while the dollar remained robust as traders awaited pivotal central bank meetings expected this week. The consensus anticipates a rate cut from the U.S. Federal Reserve while the Bank of Japan is predicted to maintain current rates.

The pan-European STOXX 600 dipped 0.5% to a fortnight low. Germany's DAX, France's CAC 40, and Britain's FTSE 100 indices also declined slightly. "European markets lack driving factors," noted Lars Skovgaard, senior investment strategist at Danske Bank, linking the slump to lackluster economic data.

In sharp contrast to Europe's lull, U.S. equity markets surged ahead, with the Nasdaq achieving another record close on Monday. Meanwhile, Asian markets such as Japan's Nikkei 225 and South Korea's Kospi also showed losses attributed to recent political tumult in South Korea.

(With inputs from agencies.)