European Markets Lifted by Fed Rate-Cut Expectations ahead of UK Budget

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading up around 0.25% on 26 November 2025.  

Macro Update: European equities opened higher as growing confidence in a potential U.S. Federal Reserve rate cut in December buoyed investor sentiment. Major regional indexes, including the STOXX 600, DAX, CAC 40 and FTSE 100, all posted early gains. Expectations of a quarter-point cut have strengthened following supportive comments from the New York Fed and rising market probabilities. 

Top Market Movers: Among top gainers on FTSE 100 index, Fresnillo PLC (LSE: FRES) witnessed a rise of 4.28% followed by Endeavour Mining PLC (LSE: EDV) which gained around 3.87%. 

Commodity Update: The dollar slipped on Wednesday after softer U.S. data strengthened expectations of a December rate cut and as markets bet the next Fed chair could lean more dovish. Precious metals gained, with gold up 0.83% at USD 4,199.50 and silver rising 1.12% to USD 51.64, while copper edged up 0.17%. Brent crude rose 0.19% to USD 62.67 after touching one-month lows amid progress in Ukraine–Russia peace talks. 

Our Stance: Global markets also benefited from speculation that a new U.S. Federal Reserve chair could be appointed before Christmas, with Kevin Hassett emerging as a leading candidate viewed as favouring lower interest rates. In the UK, attention is turning to the upcoming Autumn Budget, where Chancellor Rachel Reeves is expected to outline tax increases to address fiscal pressures. Ahead of the announcement, gilt yields edged higher as investors positioned for potential borrowing and spending shifts.  

FTSE 100 

The FTSE 100 climbed 86.91 points to 9,626.08 and continues to trade comfortably above the major support zone near 9,200, maintaining a stable overall structure. The 21-day SMA at 9,335.30 sits below the current price, reflecting a mild bullish undertone, while the 50-day SMA at 8,881.42 indicates broader stability with room for short-term consolidation. The RSI remains elevated with a slight downward bias. Key support is placed near 8,950, while resistance is seen at 10,000 and 10,120. 

Source - EODHD/Others