Photo by Juan Carlos Ramirez on Unsplash

The US stock indices extended their rally on Wednesday, marking four consecutive sessions of gains. By the end of the day, the Dow Jones (US30) rose by 0.67%, the S&P 500 (US500) gained 0.69%, and the tech-heavy Nasdaq (US100) closed 0.82% higher. Risk assets received additional support from reports that the White House has narrowed the list of candidates for Fed Chair to National Economic Council Director Kevin Hassett – a figure seen by investors as close to President Trump and more inclined toward dovish monetary policy. In the tech sector, Oracle led the way, with shares rising 4% after Deutsche Bank reaffirmed its optimistic outlook.

The Canadian dollar strengthened below 1.41 per USD, as growing expectations of Fed easing – fueled by weak US macroeconomic data – raised the probability of a December 25 bp rate cut to 80% (CME FedWatch). The Bank of Canada kept its overnight rate at 2.25% at its latest meeting, and market expectations that the regulator will remain cautious at least until December supported the appeal of the interest rate differential. This continues to attract capital inflows into CAD-denominated assets.

The Mexican peso firmed to 18.35 per USD, supported by rising bets on a softer Fed policy. Domestic conditions in Mexico remain relatively favorable despite the start of an easing cycle: in early November, Banxico cut its key rate by 25 bp to 7.25%, while maintaining a cautious, data-dependent stance. This combination provides Mexico with a substantial yield cushion, keeping the peso attractive in carry trades.

European stocks mostly rose on Wednesday. Germany’s DAX (DE40) gained 1.11%, France’s CAC 40 (FR40) closed 0.88% higher, Spain’s IBEX 35 (ES35) rose by 1.36%, and the UK’s FTSE 100 (UK100) ended positive 0.85%. This marked the third straight session of gains, supported by expectations of a possible Fed rate cut in December and hopes for progress in peace talks over the war in Ukraine. Additional optimism came from international assessments: the IMF noted that Germany’s fiscal easing and stronger investment activity have created conditions for economic recovery.

WTI crude prices held near $58 per barrel on Wednesday, little changed and hovering close to a monthly low. Fresh EIA data added slight pressure, showing US crude inventories rose by 2.774 million barrels last week, against expectations of a 0.5 million barrel draw. In addition, the US petroleum exports hit a record level, reinforcing signals of rising supply availability.

Silver prices climbed above $52.5 per ounce on Wednesday, reaching a two-week high amid stronger expectations of a Fed rate cut in December. The move was driven by fresh signs of US economic cooling: September retail sales rose less than prognoses, while consumer confidence fell sharply in November, pointing to weaker spending after months of elevated demand. Labor market trends also raised concern: ADP data showed private employers cut an average of 13,500 jobs per week in the four weeks to November 8, a notable deterioration compared to earlier periods.

Asian markets mostly rose yesterday. Japan’s Nikkei 225 (JP225) surged 1.85%, China’s FTSE China A50 (CHA50) gained 0.73%, Hong Kong’s Hang Seng (HK50) rose by 0.13%, and Australia’s ASX 200 (AU200) closed 0.81% higher.

The offshore yuan weakened to around 7.07 per USD, retreating from a 13‑month high reached in the previous session. Pressure emerged after the People’s Bank of China set the daily fixing weaker than market expectations, at 7.0779 per USD. This marked the first unexpected weakening of the fixing since July 1 and was interpreted by investors as a signal that the regulator aims to curb excessive yuan appreciation in the short term.

• S&P 500 (US500) 6,812.61 +46.73 (+0.69%)
• Dow Jones (US30) 47,427.12 +314.67 (+0.67%)
• DAX (DE40) 23,726.22 +261.59 (+1.11%)
• FTSE 100 (UK100) 9,691.58 +82.05 (+0.85%)
• USD Index 99.60 -0.06% (-0.06%)
   

News feed for: 2025.11.27

• German GfK Consumer Confidence (m/m) at 09:00 (GMT+2); – EUR (LOW)
• Eurozone ECB Monetary Policy Meeting Accounts at 14:30 (GMT+2). – EUR (LOW)

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