Silver Hits New High. Yen Slides to Record Low vs Euro

The yen fell overnight to a record low against the euro and moved close to ¥157.0 per dollar ahead of today’s FOMC decision and next week's Bank of Japan meeting. In commodities, spot silver climbed early on Wednesday after touching a new high of $61.61, while gold eased to $4205 per ounce and Brent crude rose following Tuesday’s decline. US and UK markets also focused on company updates, closing mostly flat on Tuesday before the Fed.

Equities

The FTSE 100 closed 0.03% lower on Tuesday, with gains in defence and precious-metal miners offsetting falls elsewhere. BAE Systems rose 2.1% after reports that German lawmakers are close to approving €52 billion in defence contracts next week, while Rolls-Royce added 0.4%. Among consumer groups, BAT slipped 0.3% after saying its 2026 results are likely to fall at the lower end of its medium-term targets. Shell fell 0.6% on Tuesday after news that it is seeking a buyer for a 20% stake in a Brazilian oilfield cluster to help finance a multibillion-dollar offshore development.

The FTSE 250 ended 0.1% lower. Man Group stood out, rising 3.9% during the session after J.P. Morgan upgraded the hedge fund to “overweight”, giving it a lift despite mixed broader sentiment. UK spending data drew attention too. Barclays reported that card spending fell 1.1% year-on-year in November, the steepest drop since early 2021, while a British Retail Consortium survey showed only modest retail sales growth of 1.4%.

In the US, the S&P 500 slipped 0.09% on Tuesday ahead of the Federal Reserve’s rate decision. The Dow fell 0.38%, while the Nasdaq rose 0.13%. The small-cap Russell 2000 briefly set an intraday record before closing 0.2% higher.

JPMorgan pulled the S&P 500 lower, with its shares falling 4.7% on Tuesday—the bank’s sharpest single-day drop since April. The move followed comments from its consumer and community banking chief, who said expenses are set to reach roughly $105 billion in 2026 due to growth and volume-related costs. AutoZone dropped 7.2% after quarterly earnings missed estimates, while Campbell Soup fell 5.2% after confirming it had selectively raised prices to manage higher input costs.

Nvidia ended 0.3% lower on Tuesday after the US administration said it would allow exports of its H200 processors to China for a 25% fee.

Warner Bros rose 3.8% after renewed bidding interest from Paramount Skydance and Netflix. Paramount added 0.5%, while Netflix closed 0.08% lower. Investors are also watching upcoming results from Oracle and Broadcom, which are expected to provide further clarity on corporate demand for AI-related infrastructure.

Forex & Commodities

The yen slipped towards ¥157.00 against the dollar before steadying early on Wednesday at ¥156.64, as wide interest-rate differentials continued to weigh on the currency. It also fell to a record low against the euro overnight and stayed close to that level during Wednesday trading.

Sterling was slightly firmer at $1.3305 on Wednesday morning, while the euro held near $1.1628. The dollar index stayed firm at 99.20 ahead of the Federal Reserve’s policy decision.

The Australian dollar traded at $0.6641 early on Wednesday after rising on Tuesday when the Reserve Bank of Australia signalled that inflation remains a concern.

Spot gold edged down on Wednesday morning to $4205 per ounce as traders awaited the Federal Reserve’s rate cut decision and Chair Jerome Powell’s guidance. Silver continued its strong run, rising to $61.34 per ounce after touching a record $61.61 earlier in the session. Analysts pointed to tighter inventories and higher industrial demand, with fresh support coming from ETF inflows and the US government’s move this year to classify silver as a critical mineral. Platinum traded at $1667 per ounce and palladium at $1492.

Oil was steady early on Wednesday after falling about 1% on Tuesday. Brent crude rose to $62.13 per barrel and WTI to $58.44 per barrel. API figures released late on Tuesday showed a weekly fall in US crude inventories of 4.78 million barrels, alongside rises in petrol and distillate stocks. Markets also monitored developments in Ukraine peace talks and commentary from the US on interest-rate policy. The US Energy Information Administration said on Tuesday it now expects US crude output in 2025 to average 13.61 million barrels per day, though it trimmed its 2026 forecast.