(MENAFN) Global equities advanced Thursday as stronger-than-expected U.S. employment and services data eased concerns about economic slowdown, even as the nation’s longest-ever federal government shutdown continued to obscure key indicators.

According to ADP Research, private-sector payrolls rose by 42,000 in October, topping forecasts and tempering fears of a weakening labor market. Meanwhile, the Institute for Supply Management reported that its Services Purchasing Managers Index climbed to 52.4, signaling continued expansion and exceeding analyst estimates.

Following the data, traders cut bets on a near-term Federal Reserve rate reduction, with money market pricing showing the probability of a cut dropping to 62% as labor market softness appeared to moderate.

The market optimism came amid high-stakes deliberations at the U.S. Supreme Court, which is reviewing whether President Donald Trump overstepped his emergency powers under the International Emergency Economic Powers Act in imposing tariffs. U.S. Solicitor General John Sauer argued that the act “helped secure trillion-dollar agreements with major partners such as China” and said the increase in tariff revenues was coincidental. Neal Katyal, representing the challengers, countered that Trump “bypassed Congress to impose the tariffs.” The court has not yet issued its decision, though Treasury Secretary Scott Bessent said he expects a ruling in Trump’s favor.

While most Supreme Court cases take months to resolve, this one could be expedited.

Meanwhile, as the federal shutdown drags on, Transportation Secretary Sean Duffy announced a 10% capacity reduction at about 40 U.S. airports starting Friday, intended to ease strain on air traffic controllers still working without pay.

On Wall Street, the S&P 500 gained 0.37%, the Nasdaq Composite added 0.65%, and the Dow Jones Industrial Average rose 0.48% on Wednesday before opening mixed on Thursday. The U.S. 10-year Treasury yield reached 4.16% Wednesday amid tariff deliberations, hovering near 4.15% a day later. The U.S. Dollar Index slipped 0.2% to 100 after closing at 100.2 on Wednesday.

In Europe, attention centered on the Bank of England’s policy meeting. With inflation at 3.8% in September—well above its 2% medium-term goal—the central bank is widely expected to hold its key rate steady at 4% and delay any easing until February 2026.

Across the continent, budget negotiations remain tense. In France, fiscal talks continued amid disputes, while drone-related security alerts spread. Authorities in Belgium detected a suspicious device near a base in Leuven’s Heverlee district after earlier drone sightings at Elsenborn camp on Oct. 3. Similar incidents are under investigation in Poland, Romania, Estonia, and Denmark.

European stocks closed broadly higher Wednesday, with the FTSE 100 up 0.64%, FTSE MIB 30 gaining 0.41%, CAC 40 advancing 0.08%, and DAX 40 rising 0.42%, before extending modest gains at Thursday’s open.

In Asia, markets followed Wall Street’s lead as risk appetite improved. Earlier declines tied to U.S. tech valuations reversed sharply.

Toyota Motor reported a 7% fall in net profit for April–September year over year to $11.5 billion but forecast a full-year operating profit of $22.6 billion for the fiscal year ending March. Shares rose 4.5% on the Nikkei 225 by late trade. Japan’s services PMI rose to 53.1, and its composite PMI climbed to 51.5—both exceeding expectations.

Regional benchmarks strengthened: the Nikkei 225 rose 1.5%, Kospi Index 1.6%, Hang Seng Index 1.65%, and Shanghai Composite Index 0.9%.

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