Global stock markets faced a downturn for the third straight session on Thursday, as recent U.S. economic data depicted a steady labor market while highlighting challenges in controlling inflation. The Labor Department reported a decline in initial unemployment claims, coming in below economists’ expectations at 217,000 for the last week.
Inflation concerns mounted with the producer price index’s 0.2% rise in October, reflecting potential cost hikes similar to consumer price trends driven by increased housing expenses. In tandem, stocks experienced volatility following the U.S. presidential election’s initial rally and expectations around upcoming Federal Reserve comments.
Investor interest is now skewed towards assets that could benefit from President-elect Trump’s policies, despite apprehensions over inflation and trade impacts. Bond yield changes and a strengthening U.S. dollar further underline market uncertainties, as Wall Street assesses potential fiscal policies post-election.
(With inputs from agencies.)
