Markets edge higher on Fed cut hopes despite volatility and geopolitical risks:

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading down around 0.17% on 27 November 2025.  

Macro Update: Britain’s finance minister Rachel Reeves defended her latest budget after announcing £26bn in new tax rises, arguing that scrapping the cap on child benefits for larger low-income families is socially necessary despite criticism of a return to high-tax policies. Big investors broadly welcomed the extra fiscal headroom and said it should help the Bank of England keep cutting rates, though some warned the delayed impact of tax hikes leaves growth at risk. The government will also allow limited new oil and gas output near existing fields while keeping windfall taxes, UK stocks rose on the budget news, and HMRC outlined a U.S.-style scheme to pay whistleblowers up to 30% of tax recovered in serious evasion cases. 

Top Market Movers: Among top gainers on FTSE 100 index, Glencore PLC (LSE: GLEN) witnessed a rise of 2.61% followed by Persimmon PLC (LSE: PSN) which gained around 2.42%. 

Commodity Update: The dollar weakened on Thursday in thin holiday trade as markets looked ahead to 2025, with multiple U.S. rate cuts already priced in. Gold slipped 0.56% to USD 4,178.70, silver eased 0.29% to USD 52.76, and copper dipped 0.17% to USD 10,946. Brent crude fell 0.30% to USD 62.92 on optimism around a possible Ukraine-Russia ceasefire that could eventually ease sanctions on Russian supply. 

Our Stance: Global markets reflected a mix of policy uncertainty and cautious optimism, as conflicting signals from the U.S. Federal Reserve pushed investors toward heavy hedging in the $600 trillion rates derivatives market, driving up short-term volatility in swaptions. Despite this uncertainty, Wall Street extended its rally on expectations of a December Fed rate cut, boosted by strong AI-related earnings from Nvidia and Dell. Geopolitical risks lingered, with Russia signalling it will not make concessions in Ukraine peace talks, while U.S. tariffs on Chinese goods continue to squeeze small businesses facing higher costs and supply disruptions. Meanwhile, broader market sentiment remained constructive ahead of the Thanksgiving holiday, even as oil prices softened on hopes of a Russia-Ukraine ceasefire that could unlock sanctioned supply.  

FTSE 100 

The FTSE 100 slipped 31.91 points to 9,659.67, yet it continues to trade comfortably above the major support zone near 9,200, maintaining a broadly stable structure. The 21-day SMA at 9,690.07 is positioned above the current price, indicating a mild bearish bias, while the 50-day SMA at 9,531.18 reflects broader stability and scope for short-term consolidation. The RSI remains elevated with a slight downward tilt. Key support is placed near 8,950, while resistance is seen at 10,000 and 10,120. 

Source - EODHD/Others