Thanksgiving celebrations leave European markets to their own devices, with equities largely continuing their upward trajectory.
Optimists prevail in the absence of US markets
“European markets have enjoyed a relatively positive day, as the Thanksgiving celebrations brought lower volumes and volatility. The latest German Ifo business climate survey released in the morning provided grounds for optimism just a day after the release of PMI surveys that eased fears of a sharp recession in the region. While the ‘current assessment’ element of the Ifo survey fell back, traders have clearly felt emboldened by the upside move for both ‘business climate’ and ‘expectations’ despite widespread calls for a 2023 recession.”
Ramsden rate cut claims fail to move markets as the pound continues to push higher
“The pound has continued to climb against the dollar and euro despite hints from the BoE Deputy Governor Sir Dave Ramsden that they could look to cut rates once inflation reverses its course. Nonetheless, markets appear relatively unmoved by his view, with the current rate of 11.1% for headline CPI providing little ground for a dovish turn in monetary policy. While the outlook for the UK looks bleak, we will continue to see the Bank of England stifle economic growth as long as inflation remains elevated. For the bulls, there is no doubt a future sweet spot where central banks feel able to once again step in to lift economic growth and market sentiment once again. ”
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