2025-11-26 06:02
Global stocks rise for fourth straight session Sterling advances after UK budget surprise US yields rise after four-session drop and data NEW YORK, Nov 26 (Reuters) - Global stocks rallied for a fourth straight day on Wednesday as expectations for a U.S. Federal Reserve rate cut remained elevated, while sterling was whipsawed by Britain's fiscal watchdog inadvertently publishing new forecasts before a UK budget release. On Wall Street, U.S. stocks closed higher, led by gains in the tech (.SPLRCT) , opens new tab sector that rose about 1.5%, in part due to a jump of nearly 7% in Dell Technologies (DELL.N) , opens new tab after its quarterly results and outlook. Sign up here. Equities have rallied since Friday, when expectations for a December rate cut from the Federal Reserve jumped after New York Fed President John Williams said interest rates can fall in the near term even as other policymakers insisted borrowing costs should remain steady for now. Those expectations were buttressed by comments this week from San Francisco Federal Reserve Bank President Mary Daly and Fed Governor Christopher Waller in support of a December cut. "We've seen some dovish comments from the Fed, particularly the New York Fed ... which I think are signaling a potential cut next month, and I think that that's what's been driving the markets lately," said Matthew Keator, managing partner in the Keator Group, a wealth management firm in Lenox, Massachusetts. Economic data on Wednesday showed weekly initial jobless claims dropped 6,000 to a seasonally adjusted 216,000 for the week ended November 22, the lowest level since April and below the 225,000 estimate of economists polled by Reuters. The Dow Jones Industrial Average (.DJI) , opens new tab rose 314.67 points, or 0.67%, to 47,427.12, the S&P 500 (.SPX) , opens new tab gained 46.73 points, or 0.69%, to 6,812.61 and the Nasdaq Composite (.IXIC) , opens new tab climbed 189.10 points, or 0.82%, to 23,214.69. Expectations for a 25 basis point cut from the Fed held at more than 80%, according to CME's FedWatch Tool , opens new tab, well above the 30.1% from a week ago. U.S. markets will be closed on Thursday for the Thanksgiving holiday and will have an abbreviated session on Friday. MSCI's gauge of stocks across the globe (.MIWD00000PUS) , opens new tab jumped 9.31 points, or 0.94%, to 1,000.37, and was on pace for its fourth straight session of gains, its longest streak in a month. The MSCI index has gained 3.3% over the four-day rally, its biggest four-day percentage gain since mid-May. The pan-European STOXX 600 (.STOXX) , opens new tab index closed up 1.09% to record its biggest daily percentage gain in two weeks. The dollar index , which measures the greenback against a basket of currencies, declined 0.26% to 99.59, with the euro up 0.22% at $1.1594. Sterling strengthened 0.52% to $1.3234. The currency had swung between a gain of 0.57% and a decline of 0.34% on the day in the wake of the UK budget confusion as the Office for Budget Responsibility's Economic and Fiscal Outlook was released early. British finance minister Rachel Reeves then announced a big tax-raising budget that will take more money from workers, people saving for a pension and from investors to give herself greater room to meet her deficit-reduction targets. Ten-year gilt yields were last down 7 basis points at 4.426%. The Japanese yen weakened 0.25% against the greenback to 156.45 per dollar even as sources told Reuters the Bank of Japan is preparing markets for a possible interest rate hike as soon as next month as it may take a more consistent rate hike path to alter the trajectory of the currency. The yield on benchmark U.S. 10-year notes shed 1 basis point to 3.992% as the rally in UK government bonds helped limit the downside for longer-dated U.S. debt after stronger-than-expected economic data fueled selling. The 2-year note yield rose 2 basis points to 3.479%. https://www.reuters.com/world/china/global-markets-wrapup-1-2025-11-26/
2025-11-26 05:33
A look at the day ahead in European and global markets from Gregor Stuart Hunter: It's make-or-break time for Britain's finance minister Rachel Reeves as she unveils later today a budget expected to contain tens of billions of pounds of new tax increases. Sign up here. Sterling is up 0.2% at $1.3193 in Asian trading, rising for a fifth consecutive day ahead of her speech, due to begin at 1230 GMT. In Japan, the yen rallied 0.2% against the U.S. dollar as sources told Reuters that the Bank of Japan is preparing markets for a possible interest rate hike as soon as next month, shifting the central bank onto a hawkish footing after a meeting last week between new Prime Minister Sanae Takaichi and BOJ Governor Kazuo Ueda. Takaichi's high approval ratings are prompting Japanese opposition parties to ramp up preparations for snap elections, the Yomiuri newspaper reported on Wednesday. The kiwi dollar surged 1.2% after the Reserve Bank of New Zealand cut interest rates 25 basis points to 2.25%, but removed its dovish guidance, signalling an end to the central bank's easing cycle. And the Australian dollar jumped 0.5% after a hotter-than-expected inflation report reinforced bets that the Reserve Bank of Australia is also done with rate cuts for now. Oil markets have been choppy, after Ukrainian President Volodymyr Zelenskiy signalled he was ready to advance a U.S.-backed peace plan, paving the way for a relaxation of sanctions on Russian energy and additional supplies, sending oil prices tumbling to a five-week low on Tuesday. But Brent crude futures rebounded 0.4% to $62.72 after U.S. President Donald Trump backed away from a Thursday deadline for Ukraine to agree. Trump also shrugged off a Bloomberg News report that U.S. negotiator Steve Witkoff coached the Russians on how to approach him on the topic. None of that confusion and volatility troubled equity markets, which enjoyed a broad rebound following cues from Wall Street after the S&P 500 (.SPX) , opens new tab rose for a third consecutive day. On Wednesday, MSCI's broadest gauge of shares outside of Japan (.MIAPJ0000PUS) , opens new tab jumped 1% as traders firmed up expectations the Federal Reserve will cut interest rates next month, while the Nikkei 225 (.N225) , opens new tab surged 2% on optimism about corporate earnings. But Hong Kong and China lagged gains, with the Hang Seng Index (.HSI) , opens new tab up 0.5% after earnings from AI front-runner Alibaba (9988.HK) , opens new tab that beat estimates, but still left shares down 1.1% as the e-commerce company underwhelmed investors with its Q4 guidance and said it would decrease spending on its instant commerce business - prompting a 6% gain for rival Meituan (3690.HK) , opens new tab. Key developments that could influence markets on Wednesday: UK: Autumn budget Debt auctions: Germany: 10-year government debt https://www.reuters.com/world/china/global-markets-view-europe-2025-11-26/
2025-11-26 05:30
BANGKOK, Nov 26 (Reuters) - The death toll in Thailand from flooding in the country's south is 33, a senior government official said on Wednesday. The causes of death included landslides and electrocution, government spokesperson Siripong Angkasakulkiat said. Sign up here. https://www.reuters.com/business/environment/thai-floods-death-toll-33-official-says-2025-11-26/
2025-11-26 05:13
Won reacting more sensitively to uncertainty, minister says Foreign exchange authorities closely monitoring market No specific policy measure announced; won trims gains Central bank expected to hold rates on weak currency SEJONG, South Korea, Nov 26 (Reuters) - South Korea's Finance Minister vowed on Wednesday to stabilise a weak won, but stopped short of introducing specific policy measures to address the situation, amid growing worries about the persistent weakness of the currency. Minister Koo Yun-cheol told a rare press conference focused on the currency market that authorities were closely monitoring "speculative trading and herd-like behaviour", adding that they would consider all available options to stabilise it. Sign up here. "It is true that our domestic market is reacting to high uncertainty in global financial markets more sensitively than other currencies due to structural demand pressure for dollars," Koo said. Koo, however, made no mention of any specific measure to address rising dollar demand in the near term, despite market expectations for policy efforts to stabilise the market, after a series of meetings with the National Pension Service (NPS), exporting companies and domestic stock brokerages. "Market attention was extremely high on the substance of the press conference, but it was bland," a local currency trader said. The won cut gains after the press conference to trade up 0.3% at 1,465.5 per dollar as of 0420 GMT, compared with a session high of 1,457.0. The currency, earlier this week, hit its weakest level since early April at 1,479.4. Referring to a consultative body formed on Monday with the NPS, Koo said it will not be aimed at pulling in the world's third-largest pension fund for a temporary measure to curb currency weakness but will focus on a long-term plan to balance investment returns and market stability. When asked about incentives for exporters to repatriate earnings and tax benefits to boost domestic stock investments, he said neither was currently being considered. The won has weakened more than 7% in the second half of 2025 amid worries over an investment package that is part of a trade deal with the United States, while also pressured by higher overseas investments by retail investors as well as the NPS. The Bank of Korea is expected to keep its key interest rate unchanged on Thursday, according to a Reuters poll, as policymakers grapple with a volatile currency and an overheated housing market. https://www.reuters.com/world/asia-pacific/south-korea-finance-chief-vows-fx-stability-offers-no-near-term-measures-2025-11-26/
2025-11-26 05:08
China bought cargoes worth around $300 million since Tuesday for Jan shipment Purchases come a day after call between Trump and Xi China buying US soy despite prices higher than Brazilian cargoes BEIJING/SINGAPORE, Nov 26 (Reuters) - China bought at least 10 cargoes of U.S. soybeans worth around $300 million in contracts signed since Tuesday, two traders with knowledge of the deals said, a day after the presidents of both countries spoke on the phone. The purchases of the unusually large volumes extend a surge in Chinese buying after the recent thaw in U.S.-China trade relations. U.S. President Donald Trump touted relations with China as "extremely strong" after a phone call with his Chinese counterpart Xi Jinping on Monday. Sign up here. Trump said he had pressed Xi to accelerate and increase Beijing's purchases of U.S. goods during the call, and that the Chinese leader had "more or less agreed". One trader said China bought about 12 cargoes, while another estimated the volume at 10–15. Each cargo is about 60,000 to 65,000 metric tons. All the cargoes are scheduled for January shipment from U.S. Gulf Coast terminals and Pacific Northwest ports, the sources said on Wednesday. The purchases come despite U.S. soybeans being priced higher than Brazilian supplies. China paid around $2.3 per bushel over the January Chicago futures contract for shipments from Gulf terminals and a premium of $2.2 per bushel from Pacific Northwest ports, well above the prices for Brazilian soybeans, which are around $1.8 per bushel over the January CBOT futures, traders said. "Commercial buyers will continue to avoid U.S. soybean imports, as prices remain higher than Brazilian beans. At these levels, crush margins are not financially viable," said Johnny Xiang, founder of Beijing-based AgRadar Consulting. China, which had largely shunned U.S. soybeans for months amid a tense Washington–Beijing trade standoff, has stepped up purchases recently following late-October talks between the two countries' leaders in South Korea. State-run grain buyer COFCO has led the buying, booking nearly 2 million tons of U.S. soybeans since late October, according to U.S. Department of Agriculture data. The recent deals still remain well below the 12 million tons of purchases announced by the White House. However, U.S. Treasury Secretary Scott Bessent said on Tuesday Chinese purchases of American soybeans are "right on schedule," citing an agreement for Beijing to buy 87.5 million tons of the U.S. product over the next three-and-a-half years. https://www.reuters.com/world/china/china-buys-least-10-us-soybean-cargoes-new-deals-sources-say-2025-11-26/
2025-11-26 04:41
MUMBAI, Nov 26 (Reuters) - The Indian rupee closed marginally weaker on Wednesday, troubled by portfolio outflows and routine hedging demand from local importers, while intermittent dollar sales from state-run banks cushioned the currency's fall. The rupee closed at 89.27 against the U.S. dollar, marginally weaker than its previous close of 89.22. Sign up here. Growing expectations of a December rate cut by the U.S. Federal Reserve helped boost global equities, with India's benchmark equity indexes, the BSE Sensex (.BSESN) , opens new tab and Nifty 50 (.NSEI) , opens new tab, posting gains of more than 1% - the most in a day since June. However, the positive cues did little to help the rupee, with traders pointing to outflows even as dollar sales from state-run banks limited the rupee's decline, traders said. "The market is clearly looking to go long and every dip (on USD/INR) is being bought," FX advisory firm IFA Global said in a note. The dollar index lingered near a one-week low while the offshore Chinese yuan touched a 13-month high after the country's central bank guided the market higher in tandem with a weaker U.S. currency. Against the rupee , the yuan hovered near its all-time high of 12.60 hit last week. Persistent worries over steep U.S. trade tariffs and a negative skew in trade and portfolio flows have contributed to pushing the local currency down by about 4% against the U.S. dollar and over 7% against the yuan this year. Meanwhile, dollar-rupee far forward premiums nudged higher, with the 1-year implied yield a tad higher at 2.21%, hovering near a monthly peak. With growing certainty about a Fed cut next month, traders reckon the trajectory for far forward premiums will depend more on the Reserve Bank of India's policy decision due on December 5. RBI Governor Sanjay Malhotra said in an interview on Monday that there was scope to further reduce policy interest rates but the timing would depend on the rate setting panel. https://www.reuters.com/world/india/rupee-unlikely-ride-dollar-dip-spurred-by-mounting-fed-rate-cut-conviction-2025-11-26/
