Global stock markets remain stable after a four-day rally

A gauge of global stocks held steady after four days of gains following a recovery fueled by expectations the Federal Reserve will cut interest rates faster than previously thought.The MSCI All Country World Index was little changed after paring its decline for November to 0.4% in previous sessions. Just over a week ago, the gauge had fallen almost 4% this month. European and Asian benchmarks showed modest moves, while US markets were closed for Thanksgiving. S&P 500 futures were steady. In another sign that risk appetite is returning, Bitcoin traded above $91,000 for the first time in a week. The dollar interrupted a two-day retreat.

Stock price moves followed strengthening expectations for Fed easing, with money markets pricing in a roughly 80% chance of a quarter-point cut next month and leaning toward three more by the end of 2026. Just over a week ago, traders predicted a total of three cuts. It also signals new optimism after concerns about high technology valuations undermined the stock market earlier this month.

“We are preparing for a classic end-of-year rally,” says Daniel Murray, CEO of EFG Asset Management Switzerland. “Our main scenario is one where the macroeconomic environment actually holds up well into 2026, the outlook for corporate earnings looks pretty decent and you get the added tailwind from the lagged effect of interest rate cuts.”

Among the most notable gainers on Thursday, Japanese and South Korean stocks outperformed their regional peers, with technology stocks posting leading gains in both markets. In Europe, the German DAX index rose 0.3%, while Puma SE rose 16% thanks to takeover interests from several bidders.

British government bonds have given back some of Wednesday’s rally that followed the autumn budget. Treasury Secretary Rachel Reeves has built a bigger budget cushion, boosting sentiment even as required tax increases cast a shadow over the outlook for economic growth. The pound and the FTSE 100 were little changed. “On balance, we think the UK government has done what was necessary to keep the UK bond markets on track,” wrote Bill Diviney, head of macro research at ABN Amro. “While there is obviously some risk associated with this more delayed round of fiscal consolidation, it is in addition to an already significant effort.”

Oil fluctuated after Russian President Vladimir Putin said U.S. proposals to end the war in Ukraine could form the basis for future agreements, although no final draft exists yet. Platinum hit its highest level in more than a month, supported by optimism about new demand after a Chinese exchange launched a new futures contract.