U.S. stocks closed for Thanksgiving, UK stocks and currencies under pressure, the dollar weakened on rising rate-cut expectations, and cryptocurrencies rebounded.

As market expectations for a Fed rate cut continue to rise, and as the wave of selling triggered by investor concerns over an artificial intelligence bubble has temporarily subsided, global stock markets have generally rebounded, with major stock indexes close to recovering all of November’s losses and the US dollar index correspondingly weakening. On November 27, the US stock and bond markets were closed for Thanksgiving; European stocks were mixed, while Asian stock markets collectively strengthened. The US dollar and yen were under pressure, and the pound retreated. Commodity prices diverged: silver rose, while gold and crude oil weakened, and cryptocurrencies rebounded. Following the announcement of the UK budget, the British pound became the market focus. On Wednesday local time, the UK Chancellor of the Exchequer released the Autumn Budget Report, raising the fiscal buffer to £22 billion and sharply lowering the projected 2026 GDP growth rate to 1.4%. Some details were unexpectedly leaked ahead of time, provoking a strong market reaction and lifting the pound’s exchange rate. The pound against the dollar has now edged down, erasing part of its gains. Morgan Stanley announced it has ended its bullish stance on the pound, believing it may now be in a “bad news fully priced in” state. In a report released Thursday, strategist David Adams’ team pointed out that although the budget may trigger a technical rebound in the pound, its rally is unlikely to be sustained. Their analysis suggests that with the correlation between GBP/USD and stock markets approaching zero and a lack of positive local economic drivers in the short term, the overall appeal of the currency pair is visibly diminishing. Below are key asset movements: - Nikkei 225 closed up 1.2% at 50,167.10 points. Japan’s TOPIX Index closed up 0.4%. South Korea’s KOSPI closed up 0.7%. - Major European stock indexes opened mixed. Euro Stoxx 50 fell 0.14%, UK FTSE 100 fell 0.12%, French CAC 40 rose 0.03%, German DAX 30 rose 0.16%. - The GBP/USD exchange rate was mostly flat at $1.3245; the US dollar index was flat at 99.596. - Japan’s 10-year government bond yield was mostly unchanged at 1.795%. - Spot silver rose nearly 0.7% to $53.69/oz; spot gold fell 0.05% to $4,151.69/oz; Brent crude fell nearly 0.2% to $62.42/barrel. - Bitcoin rose 1.1% to $91,208.2. As market expectations for Fed rate cuts continue to heat up, the US dollar index came under downward pressure. On Wednesday local time, US macroeconomic data were solid: September durable goods orders monthly growth met expectations, and weekly initial jobless claims declined. On the same day, the Fed’s Beige Book showed that the current economic environment features a weak job market and persistent inflation pressures. Regarding the outlook for the dollar, Westpac strategist Caitlin Buhariwala pointed out: “The main risks that the dollar faces are, on the one hand, potential weakness in the labor market, and on the other, renewed challenges to the Fed’s independence.” The market is closely watching developments in the selection of the next Fed Chair. The pound edged down to 1.3238. After Japanese Prime Minister Sanae Takaichi’s verbal intervention, the yen remained weak, trading at 156.22 to the dollar. Oil prices fell slightly, as the market watches developments in Russia and Ukraine and looks ahead to this weekend’s OPEC+ meeting. Risk warning and disclaimer: The market has risks, investment requires caution. This article does not constitute individual investment advice, nor does it take into account any specific user’s unique investment goals, financial situation, or needs. Users should consider whether any opinions, views, or conclusions in this article are suitable for their own circumstances. Investment decisions based on this are at your own risk.