Global stocks have mostly traded higher on Thursday, fueled by a positive sentiment among investors who believe that the Federal Reserve has completed its interest rate hikes in response to inflation. This narrative has been broadly supportive of equities.
With U.S. markets closed for the Thanksgiving holiday and set to reopen for an abridged session on Friday, trading volumes have been light, with few major catalysts at play.
London's FTSE 100 was the exception, experiencing a slight fall of 0.1%. Meanwhile, the Paris CAC 40 advanced by 0.2%, and Frankfurt's DAX saw a gain of 0.1%. The pan-European Stoxx 600 remained relatively flat.
In Asia, Hong Kong's Hang Seng Index rose by 1%, while the Shanghai Composite finished 0.6% higher. Tokyo markets were closed for a Japanese holiday.
According to Susannah Streeter, an analyst at broker Hargreaves Lansdown, overseas markets have embraced a "feel-good holiday vibe" emanating from Wall Street as it heads into the Thanksgiving weekend.
"With concerns about further interest rate hikes from the Fed now largely dismissed, and the economy displaying signs of resilience, there is hope that despite high interest rates, a soft landing can still be achieved. As people focus on their turkey dinners today, trading activities are expected to be thin," she added.
