Thursday Afternoon Coffee - Markets Update - 27 Nov 2025 - Stocks and Bitcoin Tick Up on Fed Hopes; Trading Muted for Thanksgiving

The Trade Academy Team
8 minutes ago
2 min read

Markets Update: Global markets maintained a largely upbeat tone while currencies saw sedate trading, as investors shrugged off the "AI bubble" worries that had roiled equities earlier in November.

Global Markets Roundup: 1 Oct 2025

European stocks inched higher Thursday and Bitcoin found its footing, buoyed by growing confidence that the Federal Reserve will cut interest rates next month. With U.S. markets shuttered for the Thanksgiving holiday, trading volumes remained light, though sentiment stayed resilient against recent fears regarding the sustainability of the artificial intelligence boom.

European Equities Gain as AI Jitters Fade

The pan-European STOXX 600 (SXXP) climbed 0.2%, driven by strength in defense and technology sectors which helped offset weakness in healthcare stocks. The narrative has shifted from valuation concerns back to monetary policy support.

Data Vacuum Fuels Rate Cut Bets

Macroeconomic visibility remains low following the record 43-day U.S. government shutdown that ended in mid-November. With most government reports fairly out of date, investors have been forced to rely heavily on rhetoric from Federal Reserve officials rather than hard economic data.

Recent comments from San Francisco Fed President Mary Daly and Governor Christopher Waller have been interpreted as dovish, drastically altering market probabilities for the December meeting.

Fed Cut Probability: Traders are now pricing in an 85% chance of a rate cut next month, a sharp rise from just 30% a week earlier, according to CME FedWatch data.

Forex: Yen Focus and Dollar Stability

The U.S. dollar held steady against a basket of currencies, while the Japanese Yen remained the primary focus of foreign exchange traders.

Currency Snapshot:

Japan’s Policy Shift:

The Yen has strengthened significantly from last week's levels of nearly 158 per dollar. Sources suggest the Bank of Japan (BOJ) is preparing markets for a potential rate hike as early as next month to alter the currency's trajectory. Prime Minister Sanae Takaichi also moved to calm markets, ruling out a "Truss moment"—a loss of confidence due to spending plans—for Japan.

Crypto and Commodities

Bitcoin staged a recovery, looking to break a month-long slump, while gold saw fractional losses in a quiet session.

Bitcoin (BTCUSD): Rose 0.7% to $90,800, set to break a four-week losing streak with a weekly gain of nearly 3%.
Gold (GOLD): Eased 0.1% to $4,159 an ounce.

Outlook

With the Thanksgiving holiday pausing U.S. flows, the true test of this sentiment will come next week as full volumes return. Investors will continue to monitor the "data gap" created by the shutdown and watch for any signals from Tokyo regarding immediate currency intervention.

Looking forward refer to the economic calendar below to see the upcoming events scheduled for today and the rest of the week.

General news - Information source from multiple newswires.

The article and the data is for general information use only, not advice!

The Trade Academy Team