(Updates prices, adds comment)

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Fed cuts interest rates by 25 basis points

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S&P 500, Nasdaq end at record highs, Stoxx 600 up 0.6%

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Euro climbs amid German political turmoil

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BoE, Swedish central bank cut rates, Norway holds as

expected

By Koh Gui Qing and Kevin Buckland

NEW YORK/LONDON, Nov 7 (Reuters) - Shares on Wall Street

scaled record highs on Thursday, lifting stock markets around

the world, while U.S. Treasury yields retreated further after

the Federal Reserve cut interest rates and as investors

processed a second Donald Trump presidency.

The Fed lowered rates by 25 basis points on Thursday, as

expected, noting that the job market has generally eased while

inflation is moving toward its 2% target - saying price

pressures had "made progress," compared with prior language that

it had "made further progress."

"The Fed didn't rock the boat," said Ryan Detrick, chief

market strategist at Carson Group in Omaha, Nebraska. "The big

question now is will they cut again in December? Our best guess

is they do, as inflation continues to improve."

The S&P 500 rose 0.74%, the Dow Jones Industrial

Average was flat, and the Nasdaq Composite jumped

1.5%. The S&P 500 and the Nasdaq both ended at all-time highs

for a second consecutive day. The MSCI index for world

stocks climbed 0.9%, also to a record high.

Europe's broad STOXX 600 index rose 0.6% after

Asian shares gained earlier in the day, with even onshore

Chinese blue chips rising 3% as investor optimism over

potential stimulus outweighed concerns about worsening trade

tensions.

Stocks are "rewarding the presumed likelihood of corporate

tax cuts and perceiving a general penchant toward deregulation

across industries as positive for earnings," said Naomi Fink,

chief global strategist at Nikko Asset Management.

Treasury yields extended declines after the Fed's rate cut,

though some investors warned that rates may not fall as steadily

as some might have expected under a second Trump administration.

"A Republican sweep seems very likely, and looser fiscal

policy as well as trade tariffs might lift not only growth but

also inflation," said Matthias Scheiber, global head of

portfolio management at Allspring Global Investments Systematic

Edge Team in London.

The benchmark 10-year yield was last at 4.3355%,

down 9 basis points on the day, after a 14 basis point rise on

Wednesday, and the 30-year yield was last at 4.5393%, down over

6 bps after the previous day's 15 bp jump.

The dollar fell 0.7% against a basket of its peers

after logging its biggest one-day gain in more than two years on

Wednesday. Traders said they were closing out profitable bets on

the Trump presidency and ahead of the Fed's decision.

The euro climbed 0.7% to $1.0803 after Wednesday's

1.8% fall, as investors also digested political turmoil in

Germany where Chancellor Olaf Scholz sacked Finance Minister

Christian Lindner, causing the ruling three-party coalition to

collapse and setting the stage for a snap election.

Deutsche Bank analysts said that while still early, the

developments could be positive for the euro due to the potential

confidence boost from a more stable German government and the

direct economic effects of a potentially more proactive fiscal

stance.

Germany's 10-year government bond yield was last up 4.8

basis points at 2.441%.

CENTRAL BANK DECISIONS

In advance of the Fed, the Bank of England cut interest

rates by a quarter point on Thursday for only the second time

since 2020. The bank said future reductions were likely to be

gradual, as it saw higher inflation after the new government's

first budget last week.

Sterling extended its gains slightly after the

decision and was last up 0.8% at $1.2986, following a 1.24%

slide on Wednesday.

Central banks in Norway and Sweden also held meetings on

Thursday, though they met market expectations and did little to

disrupt currency markets. Norges Bank at the hawkish end of the

developed market spectrum kept rates unchanged at a 16-year

high, and Sweden's Riksbank cut by 50 bps.

Bitcoin reversed earlier losses and vaulted to

another record high of $76,780 overnight. Trump had vowed to

make the United States "the crypto capital of the planet."

Gold added 1.8%, following Wednesday's more than 3%

tumble, to $2,707.21 an ounce. However, that was still not far

from its recent record high of $2,790.15.

Oil reversed losses from a sell-off triggered by the U.S.

presidential election.

Brent crude oil futures rose 0.6% to $75.4 per

barrel. U.S. West Texas Intermediate (WTI) crude also

added 0.5% to settle at $72.04.