Nov 26 – What matters in U.S. and global markets today<\/p>\n
Weaker-than-expected U.S. economic data has upped bets for a Federal Reserve interest rate cut next month, giving global equities a boost<\/a> as we move into the Thanksgiving holiday. And while Americans are prepping turkeys or heading to the airport, Britain will be chewing over the details of its much-debated budget<\/a>, which Rachel Reeves, the UK’s finance minister, is releasing today.<\/p>\n Sign up here.<\/a><\/p>\n For more on the UK budget, check out ROI editor-at-large Mike Dolan’s latest column on why a rallying U.S. bond market may soften any negative market reaction over in gilts.<\/a><\/p>\n Also, check out Mike on the latest episode of the new Morning Bid daily podcast. Subscribe to hear Reuters journalists discuss the biggest news in markets and finance seven days a week.<\/p>\n We’ll be off for the Thanksgiving holiday, so look out for the next edition of Morning Bid on Monday.<\/p>\n Today’s Market Minute<\/p>\n * The U.S.-backed 28-point peace plan to end the war in Ukraine, which became public last week, drew from a Russian-authored paper submitted to the Trump administration in October, according to three sources familiar with the matter.<\/a>* British finance minister Rachel Reeves is likely to announce tens of billions of pounds of new tax increases on Wednesday in a budget that puts her credibility on the line both with bond investors and with lawmakers demanding more welfare spending.<\/a>* U.S. tech companies’ share of S&P 500 earnings has been slipping even as their contribution to the index’s market value remains near multi-decade highs, raising concerns that their prices are further removed from underlying profit trends.<\/a>* Europe\u2019s gas market is far calmer today after years of turmoil that saw the region swap Russian supplies for liquefied natural gas<\/a> imports, a strategy that is unlikely to change even if President Donald Trump<\/a> brokers a peace deal in Ukraine, writes ROI Energy Columnist Ron Bousso.<\/a>* Reeves, who faces a make-or-break budget, should view her Labour government\u2019s deep unpopularity as a gift, writes Mike Peacock in his new column for ROI.<\/a><\/p>\n Giving thanks for bad news<\/p>\n U.S. stocks rose for the third consecutive day on Tuesday after data showed softer-than-expected retail sales <\/a>and weakening consumer confidence.<\/a><\/p>\n Retail sales increased by 0.2% in September after an unrevised 0.6% gain in August. Economists polled by Reuters had forecast retail sales would increase by 0.4%. The data was a bit stale, as the report was delayed by the 43-day U.S. government shutdown. But negative vibes were also evident in the Conference Board’s consumer confidence index, which dropped to 88.7, the lowest level since April.<\/p>\n Take these soft economic data points, combine them with the recent rise in the unemployment rate to 4.4%, add dovish statements from multiple Fed officials, and you appear to have the makings of a December rate cut. Fed funds futures are pricing in a roughly 80% probability of a 25-basis-point cut at the meeting on December 10, compared to essentially a coin flip one week ago.<\/p>\n Over in the UK, Rachel Reeves is set to release the long-awaited autumn budget, which is expected to include new tax increases, as the ruling Labour government attempts to stay within its own fiscal rules and maintain the confidence of financial markets. Sterling was fairly steady early on Wednesday, after four days of gains ahead of the big budget reveal.<\/p>\n In Japan, the yen initially rallied against the U.S. dollar as sources told Reuters that the Bank of Japan is preparing markets for a possible interest rate hike<\/a> as soon as next month. But it has since pared back those gains.Finally, oil prices hovered in a narrow range early on Wednesday. Both Brent crude and WTI settled<\/a> 89 cents down on Tuesday after Ukrainian President Volodymyr Zelenskiy told European leaders<\/a> that he was ready to advance a U.S.-backed framework for ending the war with Russia, with only a few points of disagreement remaining. Ultimately, an expected supply glut will likely keep a lid on prices in the oil market, while the potential ceasefire deal could see the floor drop lower.<\/p>\n Chart of the day<\/p>\n AI rivalry? Alphabet surges as Nvidia retreats<\/p>\n Alphabet’s shares rose about 1% on Tuesday after the Information reported Facebook-parent Meta was in discussions to use Google’s AI chips in its data centers from 2027 and rent chips from Google Cloud by next year. The news sent the share price of Nvidia, currently the dominant AI chip firm, down more than 2% to a two-month low – a sign of growing competition and rivalry among the sector’s megacaps who had previously all risen in tandem on the AI buzz.<\/p>\n Today’s events to watch<\/p>\n * UK autumn budget 2025<\/p>\n * U.S. durable goods orders<\/p>\n Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, opens new tab<\/a>, is committed to integrity, independence, and freedom from bias.Want to receive the Morning Bid in your inbox every weekday morning? Sign up for the newsletter here<\/a>.ReutersNext is coming up next week in New York. From market volatility to long-term strategies, the future of finance takes center stage at our flagship live journalism summit ReutersNEXT on Dec. 3. See the full speaker list, opens new tab<\/a> and register here, opens new tab<\/a> for the livestream of World Stage interviews and panel discussions.<\/p>\n By Anna Szymanski; Editing by Ros Russell<\/p>\n Our Standards: The Thomson Reuters Trust Principles., opens new tab<\/a><\/p>\n Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.<\/p>\n Purchase Licensing Rights<\/a><\/a><\/p>\n Anna Szymanski is Editor in Charge of Reuters Open Interest, an essential source for data-driven markets and finance commentary. Anna overseas Reuters commentary on financial markets, commodities, macroeconomics, and other key topics of interest to markets professionals. Anna joined Reuters from Oaktree Capital Management, where she was Senior Vice President and Senior Financial Writer, managing the Oaktree Insights program. Anna is a CFA Charterholder. 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