European stock markets steadied Thursday after solid gains in Asia, as markets increasingly expect the US Federal Reserve to cut interest rates next month.

Wall Street was closed for the Thanksgiving holiday.

London stocks ended the day flat as markets further digested the UK government's tax-raising budget unveiled Wednesday.

Meanwhile UK government bond yields held steady and the pound drifted higher, as the measures reassured markets.

Paris equities also ended flat while Frankfurt edged higher.

"European markets are showing a distinct lack of direction... and traders shouldn't expect too much given a threadbare economic calendar and US Thanksgiving market closure," noted Joshua Mahony, chief market analyst at Scope Markets.

"Investors were unwilling to take on fresh exposure with

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