Yen climbs as BOJ signals December rate hike

The yen rose to ¥155.41 per dollar on Monday after the Bank of Japan opened the door to a rate increase this month, arresting its recent decline. Gold touched $4,236 per ounce and silver reached a record $57.86, while Brent crude advanced to $63.60 after OPEC+ confirmed steady output for early 2026 and supply concerns grew following a drone strike on the Caspian Pipeline Consortium. The dollar index hovered near 99.45 as traders assessed the prospect of a US rate cut next week and potential changes in Federal Reserve leadership.

Equities

The FTSE 100 closed 0.3% higher on Friday, narrowing what had been a deeper decline earlier in November to finish the month down only about 0.2%. The rebound followed the UK budget, which lifted sentiment across several sectors. Oil and gas shares rose 1.3% during Friday’s session as crude prices firmed during ongoing Russia-Ukraine peace talks. Chemicals also strengthened, with Johnson Matthey rising 2.4% on Friday after J.P. Morgan upgraded the stock to “overweight”.

Whitbread fell 11.5% on Friday after warning that the government’s property tax increase would add £40–50 million to its annual costs. The update led to a sharp drop as investors assessed the impact on margins. Burberry slipped 2.9% the same day after J.P. Morgan cut its rating to “underweight”, adding pressure to a stock already coping with softer luxury demand. In contrast, Mitchells & Butlers rose 11.5% on Friday after reporting annual profit ahead of expectations, which supported confidence in the company’s progress across its pub and restaurant estate.

In the United States, the major indices pushed higher on Wednesday ahead of the Thanksgiving holiday. The Dow closed up 0.67%, the S&P 500 rose 0.69% and the Nasdaq gained 0.82%. The moves followed strong earnings updates from well-known technology names earlier in the week, helping sentiment recover after concerns about stretched valuations.

Dell Technologies rose 5.8% on Wednesday after issuing stronger-than-expected fourth-quarter revenue guidance and reporting results that beat forecasts. Management pointed to continued growth in AI-related demand, which supported the share price.

Workday fell 7.9% on Wednesday after its third-quarter subscription revenue missed expectations, weighing on the stock despite steady client growth. Deere dropped 5.7% on Wednesday after delivering an annual profit forecast that came in below estimates, with management citing tariff pressure affecting demand and costs within its machinery operations.

Airlines were firmer during what is typically the busiest US travel day of the year. The S&P 1500 Airlines index climbed 3.0% on Wednesday as passenger activity increased ahead of the long weekend. Trading volumes remained lighter than usual, with about 14.8 billion shares changing hands across US exchanges, below the recent 20-day average.

Forex & Commodities

The yen moved higher on Monday after Bank of Japan Governor Kazuo Ueda signalled that the central bank will consider a rate increase at its December meeting. His comments lifted the currency to ¥155.40 against the dollar early in the session. The pound held firm at $1.3225 after strengthening last week following the UK budget. The euro also advanced to $1.1620. The dollar index stood near 99.45 as traders assessed the likelihood of a US rate cut next week and considered the possibility of Kevin Hassett being appointed the next Federal Reserve Chair.

Spot gold rose early on Monday to $4,236 per ounce, reaching its highest level since late October before easing slightly. Silver reached a record high of $57.86 per ounce earlier in the session and later traded at $56.99. Platinum traded at $1,694 per ounce and palladium at $1,472. The moves followed a softer dollar and thin trading conditions across markets.

Oil prices climbed on Monday morning after OPEC+ reaffirmed its plan to keep output steady through the first quarter of 2026. Brent crude rose to $63.60 per barrel and WTI reached $59.77, with both benchmarks touching one-week highs. Supply concerns also increased after the Caspian Pipeline Consortium halted exports following a drone strike on its Black Sea terminal, while tensions between the United States and Venezuela added to uncertainty about future flows.