Global Markets Shift: Shares Rise, Dollar Recovers, and Oil Ticks Up

European shares rose and the dollar gained on Thursday, reversing previous losses. Asian stocks declined, U.S. trading paused, and inflation concerns persist. South Korea's central bank surprisingly cut rates, impacting the won. Inflation data and geopolitical tensions influenced oil and gold prices, amid broader market uncertainties.

On Thursday, European shares and the dollar edged higher, recovering from losses seen earlier in the week. Asian markets, however, showed a mixed trend with most stocks slipping, while Japan's Nikkei index managed to climb. The trading slowdown was expected as markets prepared for the U.S. Thanksgiving holiday.

Investor confidence was shaken midweek by data showing an uptick in U.S. consumer spending and inflation. The Federal Reserve's favored inflation measure rose to 2.3% in October, potentially tightening the outlook for future interest rate cuts. South Korea's central bank took the unexpected step of cutting interest rates, causing a dip in the won.

The dollar index rose slightly, while European bond yields found relief as French borrowing costs saw a temporary drop. Meanwhile, commodities markets responded to geopolitical developments, with oil prices rising after Israel reported a ceasefire breach, and gold inching up despite a weak November performance.

(With inputs from agencies.)