USD/JPY Hits 9-Month High, Dow Hits Record

The yen fell to 154.8 per dollar in Asian trading, its weakest level since February, before steadying after Japanese officials warned of mounting economic risks from the currency’s decline. The move came as the dollar edged up ahead of a US House vote expected to end the 53-day government shutdown, helping lift the Dow to a record close of 47,927.96.

Equities

The FTSE 100 climbed to record highs on Tuesday, rising over 1% to surpass 9,900 in early trading and closing the day up 1.2% at 9,899.6 points. This move extended Monday's rally and continued a momentum that has put the index close to the 10,000 mark.

The outperformance was further supported by fresh UK labour market data showing unemployment at 5%, the highest since 2021, and slower wage growth, which have raised market expectations for a Bank of England rate cut next month. These figures prompted traders to price in an 80% chance of a rate move in December, helping power the gains in London’s benchmark index.​

Among individual stocks, AstraZeneca stood out by climbing 1.84% on Tuesday, moving above its September 2024 peak and registering a close at £13,466, an all-time high. The company’s share price performance followed upbeat third-quarter results the previous week, with revenue rising 12% year-on-year to $15.19 billion and earnings per share up 14% to $1.19, both figures ahead of analyst expectations. The stock is now up over 35% since January, marking its best annual advance in more than two decades.​

BP shares closed 2.31% higher on Tuesday at 474.85p, building on Monday’s 1.19% gain, driven by the oil major’s latest quarterly earnings report. BP announced $0.85 earnings per share, exceeding the $0.72 consensus forecast, alongside revenue of $48.42 billion. In the latest update, the company raised its quarterly dividend to $0.4992 and maintained a ‘Moderate Buy’ analyst consensus, with an average target price of $43.14.

The Dow Jones Industrial Average closed at a record 47,927.96 on Tuesday, climbing over 1% as traders bet on an imminent resolution to the U.S. government shutdown. The S&P 500 rose to 6,846.61, while the Nasdaq slipped to 23,468.30, weighed down by weakness in technology shares.

Japanese investor SoftBank sold $5.8 billion worth of Nvidia stock, sending the chipmaker down almost 3%, while cloud firm CoreWeave fell over 16% after trimming its annual revenue forecast.

Forex & Commodities

The yen weakened sharply on Wednesday, touching 154.8 per dollar in Asian trading — its lowest level since February — before trimming losses after Japan’s finance minister warned about the growing economic costs of a weaker currency.

The euro and sterling also advanced against the yen, reaching 179.14 and 203.11 respectively. Against the dollar, sterling eased slightly to $1.3138, while the euro held steady near $1.1579. The dollar index edged up, recovering modestly from earlier losses as traders awaited a U.S. government vote later today that could end the 53-day shutdown.

US private-sector data released overnight showed firms cutting more than 11,000 jobs a week through late October, pointing to a cooling labour market ahead of the Federal Reserve’s December meeting. Market pricing now implies around a 64% chance of a 25-basis-point rate cut.

Gold climbed for a second session, reaching over $4,120 per ounce late on Tuesday, its highest level since 23 October, as traders positioned for a buy-the-dip opportunity. Silver rose to $51.12, while platinum and palladium also gained modestly.

Oil markets firmed, with Brent Crude settling at $65.16 a barrel and U.S. WTI at $61.04 late Tuesday, supported by new U.S. sanctions on Russian producers and expectations of increased demand once government funding is restored.