Global Markets Show Mixed Performance Amid Interest Rate Speculations

European and Asian stock markets presented a mixed picture on Thursday, following a rally on Wall Street. In early European trading, Germany's DAX rose by 0.2% to 23,781.53, while Britain's FTSE 100 declined by 0.2% to 9,677.14. France's CAC 40 remained nearly unchanged at 8,096.41.

In Asia, Japan's Nikkei 225 advanced 1.2% to 50,167.10, driven by investor expectations of a potential interest rate cut by the Federal Reserve at its upcoming December meeting. Reports indicate that the Japanese government plans to issue 11 trillion yen ($70.5 billion) in new bonds to support its economic package. Technology stocks performed well, with SoftBank Group rising 3.6% and Kioxia Holdings recovering 7.9% after a significant decline the previous day.

Chinese markets saw modest gains; Hong Kong's Hang Seng index increased by nearly 0.1% to 25,945.93, and the Shanghai Composite index climbed 0.3% to 3,875.26. However, investor sentiment was tempered by data showing that profits at major Chinese industrial firms grew by only 1.9% year-on-year in the first ten months of 2025, down from 3.2% in the previous period.

South Korea's Kospi added 0.7% to 3,986.91, following the Bank of Korea's decision to keep its policy rate unchanged at 2.5%, aiming to maintain financial stability amid concerns over a weakened currency and rising housing prices. Australia's S&P/ASX 200 edged up 0.1% to 8,617.30, while India's BSE Sensex increased by 0.3%.

On Wednesday, U.S. stocks closed broadly higher, with the S&P 500 and the Dow Jones Industrial Average each gaining 0.7%, and the Nasdaq composite adding 0.8%. The rally was led by technology companies, as investors grew more confident in the likelihood of a Federal Reserve interest rate cut in December. According to data from CME Group, traders are now pricing in an 85% probability of such a move.

U.S. markets are observing a shortened trading week due to the Thanksgiving holiday, with markets closed on Thursday and operating for shorter hours on Friday.

In commodities, U.S. benchmark crude added 6 cents to $58.71 per barrel, while Brent crude remained flat at $62.54 per barrel. In currency markets, the U.S. dollar slipped to 156.29 Japanese yen from 156.47, and the euro declined to $1.1585 from $1.1595.