As U.S. markets paused for Thanksgiving, European equities staged a rebound on Thursday, snapping a three-day losing streak. Lower-than-expected consumer inflation data from Germany rekindled optimism for more aggressive rate cuts by the European Central Bank (ECB).

Germany’s annual inflation rate edged higher, rising from 2.0% in October to 2.2% in November , but came in just below market expectations of 2.3%. On a monthly basis, Germany’s consumer price index (CPI) fell 0.2%, marking the sharpest decline in over a year. The unexpected contraction in monthly CPI added to speculation that the ECB could accelerate monetary easing to support the region’s economy.

European Equities Post Gains

The Euro STOXX 50, a key benchmark for the eurozone’s 50 largest blue-chip stocks, closed up 0.5%, buoyed by gains in industrials and energy stocks. Among the biggest winners were:

• Airbus SE AEDSY: +4.2%
• RWE AG RWEOY: +2.7%
• ASML Holding NV ASML: +2.3%

Dollar Rebounds, Yen Slips After Wednesday’s Rally

Meanwhile, the euro slipped 0.2%, trading at $1.0550 against the U.S. dollar. A currency weighted measure of the greenback – tracked by the Invesco DB USD Index Bullish Fund ETF UUP – was also up by 0.2%.

The yen was the underperformer among major currencies, falling by 0.3% following a 1.3% rally on Wednesday.

Commodities: Gold Shines, Oil Sees Volatility

Commodities were mixed in Thursday’s session:

• Gold futures edged up 0.2%, eyeing their sixth gain in the last seven trading days.
• Natural gas futures climbed 2.3%, recovering some ground after an 8.5% drop on Wednesday. Thus far in November, natural gas prices are up by 20%.
• Oil prices had a choppy session, initially rising on reports of Israeli forces citing violations of the Israel-Hezbollah ceasefire agreement. However, as tensions eased, oil pared gains to trade flat.

Crypto Struggles To Maintain Momentum

Cryptocurrencies saw a pullback after recent gains:

• Bitcoin BTC/USD fell 0.9% to around $95,000, failing to sustain momentum from Wednesday’s 4.6% rally.
• Ethereum ETH/USD dropped 3%, erasing part of its 10% surge the previous day. The pullback highlighted a weaker appetite for risk-on assets within the crypto space.

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