FTSE 100 rises as Barclays jumps and dollar softens

Barclays’ 3.2% gain yesterday helped lift the FTSE 100 by 0.9%, supported by strength in major miners including Fresnillo, which rose 5.2%. In the US, the S&P 500 closed 0.69% higher as Dell climbed 5.8% after issuing a strong revenue outlook, while Deere fell 5.7% following its weaker profit forecast. The dollar index slipped about 1% from last week’s six-month high as traders shifted focus towards expected US rate cuts into 2026.

Equities

The FTSE 100 closed 0.9% higher on Wednesday, supported by gains across banks and miners after the Chancellor set out a tax-raising budget that broadened the government’s fiscal room. The FTSE 250 also moved 1.2% higher during the session. The market responded positively to confirmation that the fiscal buffer had grown to nearly £22 billion over five years.

Banks rose firmly after the budget avoided fresh targeted taxes. Standard Chartered gained 2.8% by the close, while Barclays added 3.2%. Mining stocks also pushed higher. Fresnillo rose 5.2% as gold prices moved up, Endeavour Mining added 4.8% and Hochschild climbed 6%. Industrial miners followed suit, with Anglo American up 3.2% and Antofagasta 2.1% higher on stronger copper prices.

Homebuilders slipped following the announcement of higher taxes on high-value properties. Berkeley Group fell 2.9% on Wednesday. Defence stocks continued to attract attention, and BAE Systems rose 1.4% as renewed discussion of a possible Russia-Ukraine peace framework resurfaced. Among consumer names, Diageo fell 1% as beverages stocks lost ground.

In the United States, Wall Street moved higher on Wednesday as the Dow rose 0.67%, the S&P 500 gained 0.69% and the Nasdaq climbed 0.82%. All three indices extended their run of gains into a fourth consecutive session ahead of the Thanksgiving break.

Dell Technologies rose 5.8% after issuing a strong revenue outlook linked to continuing demand for AI-driven server hardware. Nvidia also remained in focus following upbeat quarterly results earlier in the week that helped steady sentiment after last week’s weakness in large-cap tech. Workday fell 7.9% late on Tuesday after the company reported subscription revenue slightly below expectations. Deere dropped 5.7% on Wednesday after providing a full-year profit forecast that missed analysts’ estimates, citing tariff pressure on costs.

Airlines traded strongly, and the S&P 1500 Airlines index jumped 3% on what is typically the busiest US travel day of the year. Economic data showed September core capital goods orders above forecasts, while initial unemployment claims came in below expectations. Continuing claims, however, continued to edge higher.

Forex & Commodities

The US dollar index was steady at 99.43 early on Thursday after retreating through the week from last week’s six-month high. The yen moved up to 155.9 per dollar as Bank of Japan officials struck a firmer tone on rates. The euro rose above $1.1600 and sterling edged up to $1.3265 following the UK Budget, which helped ease concerns about the public finances. The New Zealand dollar climbed to $0.5728 after the Reserve Bank of New Zealand cut rates on Wednesday but signalled the easing cycle may be finished, while the Australian dollar moved up to $0.6536 after inflation came in stronger than expected.

Spot gold slipped early this morning to $4153 per ounce after reaching a near two-week high on Wednesday, with investors taking profits. Traders monitored contrasting comments from US Federal Reserve officials on the outlook for December rate cuts. Weekly US jobless claims fell on Wednesday and consumer confidence softened in November. Kevin Hassett, now viewed as a frontrunner to replace Jerome Powell as Federal Reserve Chair, repeated his view that interest rates should be lower.

Oil eased early this morning as Brent fell to $63.01 per barrel and West Texas Intermediate slipped to $58.60. Both benchmarks had risen about 1% on Wednesday. Traders assessed the possibility of progress towards a Ukraine ceasefire that could lead to the easing of sanctions on Russian supply. US envoy Steve Witkoff is due in Moscow next week for further discussions. Analysts also pointed to limited liquidity ahead of the US Thanksgiving holiday. Sources said OPEC+ is expected to keep production unchanged at its meeting on Sunday, while some producers have been increasing output since April to win market share.