Euro's Plunge Amid ECB Rate Cuts and Global Market Fluctuations

The euro hit an 11-week low after the ECB trimmed rates by 25 basis points. The financial markets reacted variably with U.S. retail sales surpassing forecasts and European shares rising. China's real estate struggles continue as investors await government measures to revive the sector.

The euro sank to an 11-week low on Thursday following the European Central Bank's decision to cut rates by 25 basis points, a move that was anticipated by financial markets. European shares maintained gains, buoyed by promising earnings reports from domestic firms and Taiwanese semiconductor giant TSMC.

In the United States, retail sales figures exceeded expectations, boosting both American stocks and the dollar. The ECB's rate cut, which marks the first consecutive reduction in 13 years, suggests that inflation could hit its 2% target sooner than anticipated, with markets forecasting another cut in December.

Meanwhile, China's real estate sector continues to wane, as blue-chip indexes in Hong Kong and mainland China dropped, and real estate stocks reversed recent gains. Despite promises from China's housing ministry to improve builders' access to funding, the lack of fresh stimulus measures left investors underwhelmed.

(With inputs from agencies.)