Global Equities Hold Steady as Fed Rate Cut Bets Rise Amid Political Turmoil

On Thursday, global equities maintained their stability as financial markets anticipated a rate cut from the Federal Reserve next month, leading to a decline in the dollar. Wall Street prepared for a subdued opening, even as Nvidia's China-related uncertainties impacted Asian and European technology stocks.

European stocks experienced volatility, with the Stoxx 600 index declining by 0.3%. The U.S. dollar weakened further, affected by a perceived 85% likelihood of an upcoming rate cut from the Federal Reserve amidst political pressures from President Trump on the central bank's policies.

The focus also shifted to European fiscal issues, particularly in France, where Prime Minister Francois Bayrou's debt-reduction strategy faces a confidence vote. In currency markets, the euro and sterling saw slight gains against the U.S. dollar, while the 2-year Treasury yield hovered near recent lows.

(With inputs from agencies.)