ASX set to dip, European stocks rise as markets slow for Thanksgiving

The dollar index, which measures the US currency against six rivals, was 0.1 per cent higher at 106.2 after dropping 0.7 per cent in the previous session.

Chris Turner, global head of markets at lender ING, said Wednesday’s fall in the dollar was likely driven in part by investors cashing in gains on US stocks and bonds in November before the end of the month.

“Presumably, some of this activity took place in the more liquid markets yesterday than waiting for Thanksgiving-thinned conditions.”

In a surprise move, South Korea’s central bank cut benchmark interest rates for a second consecutive meeting on Thursday after inflation slowed more than policymakers predicted. The won weakened after the decision.

The yen was 0.3 per cent lower at 151.52 per dollar after rallying to a one-month high in the previous session. The Asian currency is headed for its strongest week since early September on growing expectations of a rate hike from the Bank of Japan next month.

The euro was down 0.1 per cent at $US1.0552 after rising 0.7 per cent in the previous session in the wake of European Central Bank board member Isabel Schnabel saying that rate cuts should be gradual and move to neutral, not accommodative, territory.

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European bond yields fell as prices climbed , a welcome bit of respite for France’s government, which saw its borrowing costs rise to their highest over Germany’s since 2012 on Wednesday.

French Finance Minister Antoine Armand said on Thursday the government was ready to make concessions over its budget, which has faced widespread opposition from both far-left and far-right politicians.

Investors were watching inflation data for euro zone countries and German states trickle in on Thursday before whole-bloc figures on Friday.

In commodities markets, oil prices ticked up after Israel said its ceasefire with Hezbollah had been breached, with Brent crude futures 0.4 per cent higher at $US73.1 a barrel.

Spot gold was up 0.1 per cent at $US2639 per ounce but on course for a near 4 per cent drop in November, its weakest monthly performance in over a year.

Reuters

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