Berliner Boersenzeitung - Stocks extend gains on US rate cut hopes

London edged up, and the pound was flat, as the centre-left Labour government prepared to deliver a tax-raising budget aimed at curbing debt and funding public services.

The UK bond market will be closely watched, with finance minister Rachel Reeves seeking to reassure investors she has control over public finances.

Paris and Frankfurt stocks also gained, supported by hopes of progress toward the end of Russia's war in Ukraine.

US envoy Steve Witkoff will visit Moscow next week to meet with Russian President Vladimir Putin as Washington presses on with negotiations to end the war.

Crude prices steadied after falling sharply Tuesday on speculation that a Ukraine peace deal could see Russia allowed to export vastly more oil.

Risk appetite was further boosted by a report that US President Donald Trump's top economic aide was the frontrunner to become the Federal Reserve's next boss.

Kevin Hassett is a close ally of the president and Bloomberg reported that he was someone who would back Trump's calls for more rate cuts.

"It's hard to ignore that the dramatic shifts in rate cut hopes have been the dominant market driver in recent weeks," said Matt Britzman, senior equity analyst at Hargreaves Lansdown.

Expectations for a December rate cut surged this week after several Fed officials said they backed a third straight reduction, citing labour market weakness despite stubborn inflation.

Fresh data reinforced those expectations: official figures showed US retail sales lost momentum in September and a separate survey saw consumer confidence hit its lowest level since April this month.

Payroll firm ADP said also that the four weeks to November 8 saw private employers shed an average 13,500 jobs per week.

Wall Street's three main indices enjoyed a third day of healthy gains, with Asia largely following.

Seoul jumped more than two percent, while Tokyo and Taipei each closed up 1.9 percent. Hong Kong rose and Shanghai dipped.

The gains come after a pullback on trading floors for much of November owing to worries about lofty valuations, particularly among tech firms, with some questioning the vast sums of cash invested in the artificial intelligence sector.

Shares in Chinese ecommerce titan Alibaba dropped more than one percent after the group reported a fall in profit linked to consumer subsidies and the building of data centres to deal with its AI ambitions.

- Key figures at around 1100 GMT -

London - FTSE 100: UP 0.2 percent at 9,632.60 points

Paris - CAC 40: UP 0.5 percent at 8,061.85

Frankfurt - DAX: UP 0.4 percent at 23,547.04

Tokyo - Nikkei 225: UP 1.9 percent at 49,559.07 (close)

Hong Kong - Hang Seng Index: UP 0.1 percent at 25,928.08 (close)

Shanghai - Composite: DOWN 0.2 percent at 3,864.18 (close)

New York - Dow: UP 1.4 percent at 47,112.45 (close)

Euro/dollar: UP at $1.1576 from $1.1570 on Tuesday

Pound/dollar: DOWN at $1.3164 from $1.3165

Dollar/yen: UP at 156.49 yen from 155.97 yen

Euro/pound: UP at 87.93 pence from 87.86 pence

Brent North Sea Crude: DOWN 0.1 percent at $61.77 per barrel

West Texas Intermediate: DOWN 0.1 percent at $57.90 per barrel

(P.Werner--BBZ)