Macro update
Asia softens as risk appetite fades:
Regional equities slipped following November’s rally, with US and European futures also pointing lower and cryptocurrencies down more than 5%, signalling a broad risk-off mood.
Yen strengthens on Ueda’s comments:
The Japanese yen firmed to around ¥155.50 after the Bank of Japan (BoJ) governor indicated a rate hike is under consideration, pushing Japanese government bond yields to their highest levels since 2008.
Japan rate expectations reset:
Ueda’s remarks drove the Nikkei 225 down roughly 2% and lifted two- and ten-year JGB yields, as markets shifted focus toward potential policy normalisation and Tokyo’s fiscal challenges.
US data and Powell guidance awaited:
Investors are watching for manufacturing, services and sentiment reports, as well as remarks from Federal Reserve (Fed) Chair Powell, with markets pricing an 87% chance of a rate cut next week.
Consumer spending in the spotlight:
Early holiday data pointed to strong online demand, with traders assessing whether resilient consumption reinforces hopes for a soft landing.
Oil inches higher:
Crude oil prices rose about 1% after OPEC+ opted to keep output levels unchanged for the first quarter of 2026 amid concerns over a potential supply surplus.
FTSE 100 recovery loses upside momentum
The FTSE 100 bullish reversal off its 9,423 November low is losing upside momentum, opening the way for at least a minor correction lower to be seen.
The 7 November low at 9,638 may thus be revisited.
A rise above Friday’s 9,740 high would likely engage the 9,788-to-9,792 resistance area, though. It consists of the late October-to-early November highs.
