Thanksgiving Holiday Thins Trading. Markets Await ECB October Meeting Minutes

London: 23 November 2023 (TraderMade): As global markets navigate the Thanksgiving holiday lull in Japan and the United States, investors turn their attention to crucial events, with the European Central Bank (ECB) taking the spotlight.

The release of the ECB's October meeting minutes and the flash Purchasing Managers' Index (PMI) figures for various European countries are at the center stage today. The ambiguity surrounding ECB policy is further fueled by comments from key figures. The ECB President Christine Lagarde warns against premature celebration despite dovish sentiments from Mario Centeno.

In the UK, sterling and the FTSE 100 react soberly to Finance Minister Jeremy Hunt's autumn budget and the sluggish economic outlook.

Analysts are focused on the forward-looking flash November PMIs, aiming to assess recession risks and gauge the timing of potential rate cuts. Notably, the eurozone PMI indicates economic contraction, mirroring similar trends in Britain and a sharp contraction in the US October manufacturing PMI.

With Thanksgiving in play, traders remain cautious, mindful not to interpret every market move as a definitive signal.

Later today, Sweden's central bank faces a closely watched decision on whether to hike interest rates. A steady decision could signal the end of the cycle, potentially impacting the crown.