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London / AFP
European stock markets mostly rose on Thursday but London faltered in a subdued trade with Wall Street closed for Thanksgiving.
“The usual Thanksgiving calm has descended across markets, as European investors reconcile themselves to a day of low volumes and quiet trading,” said Chris Beauchamp, chief market analyst at online trading firm IG.
In foreign exchange, the dollar barrelled higher against most currencies, sitting at an eight-month high against the yen and hitting a record high against the Indian rupee.
The surge in the greenback helped fuel another rally in Tokyo but traders in most other Asian markets turned cautious after recent healthy gains.
US investors gave Asia another strong lead with the Dow hitting a new record on Wall Street after fresh data showed further improvement in the US economy and reinforced expectations for an interest rate hike next month.
“Wall Street closed at record highs for a third day,” noted Lee Wild, head of equity strategy at stockbroker Interactive Investor.
“While few wanted to open new positions ahead of the long Thanksgiving holiday, and volume was low, it says everything about the optimism among America’s money men that early losses soon turned to gains.”
Global markets have largely been piling higher since Donald Trump’s shock election win two weeks ago, with traders betting his big spending, high tax plans will bolster an already healthy economy.
However, there are concerns among emerging market governments that his threats to tear up global trade deals could lead to an era of protectionism and throw up huge US tariffs.
The near certainty that Trump’s policies will fuel inflation, forcing the Federal Reserve to lift rates, has pushed the dollar higher.
On Thursday the dollar broke 113 yen for the first time since April, while it was also at a 20-month high on the euro.
The tumbling yen lifted exporters on Tokyo’s Nikkei index, which ended 0.9 percent higher.
Minutes from the Federal Reserve policy meeting this month showed most board members thought a rate hike would be appropriate “relatively soon”.
And those thoughts were backed up by figures showing a surge in durable goods orders.