European equities eked out a modest gain on Thursday, with the pan-European Stoxx 600 reversing early losses to finish 0.12% higher as investors assessed a shifting global economic landscape, incoming corporate news, and rising expectations of US monetary easing.
Germany’s DAX led the region’s major indices, advancing 0.22% to end the day at 23,777.79, while Italy’s FTSE MIB followed closely with a 0.21% gain to settle at 43,219.87.
Momentum was flatter elsewhere, with the UK’s FTSE 100 inching up just 0.02% to 9,693.93 and France’s CAC 40 adding a marginal 0.04% to close at 8,099.47.
The session’s cautious optimism followed a strong showing on Wednesday, when the index climbed nearly 1.1% with broad-based gains across sectors and major regional bourses.
Markets across Europe have been buoyed this week by renewed hopes that the US Federal Reserve may deliver another rate cut at its December 9–10 meeting.
The CME FedWatch tool showed traders pricing in an 84.9% chance of a quarter-point rate cut in December, continuing a trend that has supported both equity and bond markets globally.
Expectations have strengthened following recent dovish remarks from Federal Reserve officials and softer US labour-market indicators.
The improving sentiment has not been limited to Europe.
US stocks rose on Wednesday, marking a fourth straight gain ahead of the Thanksgiving holiday, while Asia-Pacific markets tracked Wall Street higher.
India’s benchmark indices hit fresh record highs overnight. US markets remained closed on Thursday for the holiday and will resume with a shortened trading day on Friday.
Major movers on Thursday
The standout performer in Europe was German athletic-wear company Puma, which surged 18.9% after Bloomberg reported that potential buyers—including Chinese sports giant Anta Sports—were evaluating a bid.
The report, citing unnamed sources, said discussions were ongoing.
The stock’s rally pushed it to the top of the Stoxx 600, marking one of its strongest single-day performances in recent years as consolidation speculation gripped the market.
Defence names were also among the notable movers. Rheinmetall gained 1.24% and Saab added 2.5%, though both pared earlier advances.
Their performance came amid continued US diplomatic efforts to broker a peace agreement between Russia and Ukraine, which has kept defence-related shares in focus throughout the year.
Novo Nordisk shares slipped 1.5%, reversing the previous day’s gains.
The decline followed the US Centers for Medicare and Medicaid Services’ announcement on Wednesday of newly negotiated 2027 pricing for the company’s blockbuster drugs Ozempic and Wegovy.
The Medicare patient price will be set at $274 — a 71% discount to the current list price, raising questions about long-term profitability for the firm’s flagship obesity and diabetes treatments.
In the UK, gilt yields moved higher as investors weighed the implications of the country’s Autumn Budget.
The yield on the benchmark 10-year gilt rose more than two basis points, though it remained below the highs recorded earlier in the trading day.
Bond markets are closely tracking the fiscal outlook as policymakers attempt to balance economic support with longer-term debt discipline.
Markets await fresh catalysts
Thursday’s movement across European markets reflected an environment of cautious consolidation rather than directional conviction.
With investors awaiting further signals on US monetary policy, European fiscal developments, and corporate updates, near-term volatility remains likely.
Still, the modest rise in the Stoxx 600 underscored the resilience of market sentiment as global equity benchmarks attempt to stabilise following a difficult month and look ahead to key economic releases and policy decisions in December.
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