A file photo of traders working on the trading floor at the New York Stock Exchange (NYSE) in New York City, US.
London: Global stocks mostly moved higher yesterday as investors waited to see the market performance.
Global stock markets had a tumultuous time last week, spiralling lower after the US Federal Reserve signalled fewer interest rate cuts than had been expected for 2025.
But it ended on a positive note as traders welcomed below-forecast US inflation data that raised hopes about the health of the world’s biggest economy.
US inflation data for November came in lower than expected, providing some optimism that policymakers were winning the battle against rising prices and would have room to keep cutting rates.
That helped Asian markets move higher yesterday, but European markets wobbled, while Wall Street was mixed at the open of trading.
“That expectation is rooted in the understanding that the last five trading days of the year and the first two trading days of the new year are typically accented with a positive bias,” he added.
Sentiment was boosted by news that US lawmakers had reached a deal over the weekend to avert a holiday-season government shutdown.
Still, there remains some trepidation among investors as Donald Trump prepares to return to the White House, pledging to cut taxes, slash regulations and impose tariffs on imports, which some economists warn could reignite inflation.
“The initial response to the US election was positive as investors focused on the obvious tailwinds to profitability: lower corporate tax rates and less regulation,” said Ronald Temple, chief market strategist at Lazard.
“However, I expect much more dispersion within the equity market when the reality of a much-less-friendly trade environment sets in,” he said.
In Europe, the FTSE 100 moved higher as the pound slid following data that showed that the UK economy stagnated in the third quarter, revised down from initial estimates of 0.1 percent growth.
Official data out of Spain yesterday showed that the Spanish economy grew 0.8 percent in the third quarter as domestic consumption and exports increased, comfortably outstripping the European Union average.
Shares in Japanese auto giant Honda rose over three percent after it announced yesterday an agreement to launch merger talks with struggling compatriot Nissan that could create the world’s third largest automaker.
