FTSE 100 climbs as upgrades lift shares

​​​FTSE 100 adds modest gains in quiet session

​The FTSE 100 edged approximately 10 points higher to 9,704 in subdued trading following the Thanksgiving holiday across the Atlantic. The benchmark index found support as market participants assessed the impact of the recent Budget measures on UK businesses.

​Trading volumes remained light as many US investors stayed away from their desks, creating a quieter backdrop for price movements. The modest advance suggested cautious optimism amongst traders, though conviction remained limited given the thin liquidity conditions.

​Sentiment across European markets reflected similar themes, with continental bourses also posting modest gains. The lack of major economic data releases allowed corporate news to drive individual stock movements throughout the morning session.

​Broker recommendations spark share price moves

Weir Group, IMI and easyJet all benefited from analyst upgrades, lifting their respective share prices in early dealings. These positive calls provided welcome support to the industrial and travel sectors, which have faced headwinds in recent months.

​The upgrades reflected growing confidence in the outlook for these businesses, with analysts highlighting improved operational performance and better-than-expected trading conditions. For easyJet, the assessment came as the airline sector showed signs of stabilising after a difficult period.

​Conversely, Burberry suffered from a downgrade as concerns mounted over weakening demand in the crucial Chinese market. The luxury goods maker has struggled with changing consumer patterns in Asia, where economic uncertainty has dampened appetite for premium products.

​Whitbread extends losses after double downgrade

​Whitbread shares tumbled around 6 percent after receiving a double downgrade, marking another setback for the Premier Inn operator. The fresh negative assessment compounded what has already been a challenging month for the hospitality group.

​Analysts cited concerns about the impact of rising costs and softer consumer spending on the company's outlook. The Budget's implications for employment costs have added to worries that margins could face sustained pressure in the quarters ahead.

​The decline extended Whitbread's recent underperformance relative to the broader market, with investors clearly concerned about the group's ability to maintain profitability. Trading in the shares remained heavy throughout the morning as holders reassessed their positions.

​Mitchells & Butlers surges on strong trading update

​Shares in pub operator Mitchells & Butlers jumped nearly 9 percent after reporting a solid start to its new financial year. Like-for-like sales rose 3.8 percent, demonstrating resilient demand despite ongoing economic uncertainty and cost-of-living pressures.

​The company also confirmed further progress in reducing its debt burden, providing reassurance to shareholders concerned about balance sheet strength. This combination of revenue growth and improving financial flexibility proved highly attractive to investors seeking value opportunities.

​Management commentary suggested trading momentum had been maintained across the group's estate of managed pubs and restaurants. The performance indicated that consumers were still willing to spend on out-of-home leisure, albeit with careful consideration of value for money.

​Asian markets post broad gains

​Regional indices across Asia closed mostly higher as investors grew more optimistic about the prospect of US interest rate cuts. The dovish commentary from Federal Reserve (Fed) officials helped support risk appetite, encouraging renewed buying interest in equities.

​Calmer trading conditions also contributed to the firmer tone, with volatility subsiding after recent turbulence. Japanese markets benefited from stabilisation in the yen, which had been a source of concern for exporters earlier in the month.

​Chinese shares showed resilience despite ongoing worries about the property sector and patchy economic data. Hopes that policymakers might introduce further stimulus measures provided some support, though caution remained evident in trading patterns.

​The positive session in Asia set a constructive tone for European markets, though traders remained mindful of thin liquidity conditions. With the year-end approaching, many participants are positioning portfolios defensively whilst remaining alert to any unexpected developments.

​CME systems outage disrupts futures trading

​A technical issue at CME Group halted trading in several futures contracts, affecting currencies, commodities and Treasuries during an already thin session. The outage highlighted vulnerabilities in market infrastructure, particularly during periods when fewer participants are actively monitoring positions.

​Liquidity was significantly impaired as market makers were unable to update prices across affected contracts. The timing of the disruption, coming during holiday-affected trading, meant some positions may have been left unhedged for longer than intended.

​Authorities confirmed they were investigating the cause of the systems failure, with CME working to restore full functionality. Such incidents raise questions about the robustness of critical market infrastructure, especially as trading increasingly relies on electronic platforms.

​The disruption served as a reminder of operational risks that can emerge even in well-established markets. For traders looking to access global markets, understanding platform reliability becomes crucial, particularly when holding leveraged positions that require active management.

​Fed officials reinforce December rate cut expectations

​Senior Federal Reserve (Fed) policymakers made comments that strengthened market expectations for a December interest rate reduction. The dovish tone provided support to global equities late in November, as traders priced in a higher probability of monetary easing.

​Officials emphasised their data-dependent approach whilst acknowledging signs that inflation pressures were gradually subsiding. This messaging encouraged investors to increase exposure to risk assets, with technology stocks particularly benefiting from the improved sentiment.

​The prospect of lower borrowing costs typically supports valuations across equity markets, making shares more attractive relative to fixed income. For UK-listed companies with significant US operations, the potential shift in Fed policy could provide an additional tailwind to earnings.

​However, analysts cautioned that much depends on upcoming economic data releases. Should inflation prove stickier than anticipated, the Fed may be forced to maintain its restrictive stance for longer than markets currently expect.

​Tokyo inflation keeps BoJ rate hike speculation alive

​Japanese consumer price inflation held steady at 2.8 percent, keeping alive speculation that the Bank of Japan (BoJ) might raise interest rates next month. The persistent price pressures have prompted market participants to reassess their assumptions about the BoJ's policy trajectory.

​The Japanese yen stabilised near recent lows against major currencies as traders weighed the likelihood of tighter monetary policy. Any move by the BoJ to normalise rates would mark a significant shift after years of ultra-loose conditions and negative interest rates.

​For Japanese exporters, the prospect of a stronger yen presents both opportunities and challenges. Whilst it reduces the cost of imported raw materials, it also makes their products less competitive in overseas markets.

​Global investors are watching Japanese monetary policy closely, as any significant shift could ripple through currency and bond markets. The BoJ's decisions have wider implications for carry trades and international capital flows.

​Dollar heads for steepest weekly decline since July

​The US dollar is on course for its biggest weekly fall since July, with the greenback weakening against most major currencies. The decline reflected shifting expectations around Fed policy, with traders anticipating a more dovish stance from US monetary authorities.

​The Australian dollar and New Zealand dollar gained ground as markets priced in the likelihood that interest rate cutting cycles in those economies were nearing an end. This relative strength in antipodean currencies suggested investors were becoming more comfortable with the growth outlook for the region.

​Currency movements have significant implications for UK businesses with international operations. A weaker dollar can benefit exporters to the United States, though it may squeeze profit margins for firms that import dollar-denominated goods or commodities.

​For traders looking to capitalise on currency movements, platforms offering forex trading provide access to major pairs and emerging market currencies. Understanding how monetary policy divergence drives exchange rates remains crucial for managing currency exposure effectively.

​Commodities show mixed performance to end month

​Oil prices ticked modestly higher but remained on track for a fourth consecutive monthly decline, reflecting concerns about demand growth and ample supply conditions. The energy complex has struggled to find sustained momentum despite periodic geopolitical tensions that typically support prices.

​Gold extended its November advance to approximately 4.5 percent, benefiting from its traditional role as a safe-haven asset. The precious metal found support from expectations of lower real interest rates, which reduce the opportunity cost of holding non-yielding assets.

​Industrial metals showed varied performance, with some gaining on hopes for Chinese stimulus whilst others fell on weak manufacturing data. The divergence underscored uncertainty about the pace of global economic activity heading into the final weeks of the year.

​Investors seeking exposure to commodities can access markets through various instruments. Those interested in gold trading or oil trading platforms can implement strategies ranging from directional bets to hedging existing portfolios.