Australian shares are set for a modest pullback at the open, with futures pointing down 26 points, or 0.3%, to 8603. Even so, the S&P/ASX 200 remains on track to end the week about 2% higher. Global markets were largely flat overnight as the US Thanksgiving holiday paused trading activity and kept futures volumes subdued.
With US markets shut for the holiday and set to reopen for a shortened session on Friday, closing at 1pm local time, the S&P 500 remains 1.1% below its record high, while the volatility index has slipped to a three-week low. Futures are also signalling rising confidence that the Federal Reserve will cut interest rates at its December meeting, with traders assigning an 86.9% probability to a quarter-point move.
Rates outlook and sentiment
Expectations of a near-term rate cut continue to build, reinforcing the week’s stronger market tone. The shift in positioning has supported improved breadth across US equities, helping to reverse the weakness seen in early November. Technology stocks, after a softer month, are expected by analysts to stabilise into December, with some heavyweight names forecast to rebound into early 2025.
Europe moves higher
European markets closed slightly stronger on Thursday. The Stoxx 600 finished 0.12% higher after reversing early losses, extending momentum from the previous session, when the index rose almost 1.1%. Most major bourses and sectors were in positive territory as investors digested mixed regional economic signals.
Puma jumped 18.9% following reports of takeover interest, while defence names Rheinmetall and Saab also posted gains. Novo Nordisk dipped 1.5% after US authorities released newly negotiated Medicare prices for its diabetes and weight-loss drugs from 2027. In bond markets, UK gilt yields edged higher as investors assessed the government’s Autumn Budget.
Local agenda
In Australia, attention turns to domestic data, with October private-sector credit due at 11.30am. Across the Tasman, New Zealand will release consumer-confidence figures for November.
