Markets edge higher on Fed cut hopes:

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading up around 0.13% on 28 November 2025.  

Macro Update: The Bank of England opted to hold its Bank Rate at 4.00%, in a narrowly split 5–4 decision — signalling cautious optimism but also concern over persistent inflation and a weakening labour market. At the same time, labour-market softness has become more evident, with unemployment rising and business investment under pressure, raising the prospect of further interest-rate cuts if disinflation continues. 

Top Market Movers: Among top gainers on FTSE 100 index, Weir Group PLC (LSE: WEIR) witnessed a rise of 1.67% followed by IMI PLC (LSE: IMI) which gained around 1.67%. 

Commodity Update: The U.S. dollar headed for its weakest week since July as expectations grew for a Fed rate cut next month amid thin Thanksgiving trading. Gold rose 0.76% to USD 4,221.65, silver gained 1.98% to USD 54.23, and copper added 0.60% to USD 11,006. Brent crude held steady at USD 63.34, with markets awaiting updates from Russia-Ukraine peace efforts and Sunday’s OPEC+ meeting for supply cues. 

Our Stance: The outlook for UK growth has been modestly upgraded: according to EY ITEM Club, GDP growth for 2025 is now expected to reach 1.5%, up from earlier estimates, though growth is likely to slow again in 2026 as fiscal tightening and global headwinds bite.  Meanwhile, headline inflation has begun to ease slightly: CPI dipped from 3.8% to around 3.6% in October, suggesting price pressures may be starting to moderate, though inflation remains nearly double the Bank of England’s 2% target. 

FTSE 100 

The FTSE 100 rose 31.91 points to 9,708.96, continuing to hold well above the major support zone near 9,200 and maintaining a broadly stable structure. The 21-day SMA at 9,689.26 sits below the current level, suggesting a mild bullish undertone, while the 50-day SMA at 9,553.71 indicates broader stability with room for short-term consolidation. The RSI remains elevated with a slight downward tilt. Key support lies near 8,950, with resistance at 10,000 and 10,120. 

Source - EODHD/Others