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Bitcoin (COIN:BTCUSD) powered higher on Wednesday, reclaiming the $93,000 level after tumbling toward $84,000 at the start of the week. Traders pointed to a more constructive regulatory tone in the U.S. as well as stronger conviction that the Federal Reserve could lower borrowing costs in the coming days.

As of 02:19 ET (07:19 GMT), Bitcoin was up 7.2%, trading at $93,101.6.

The rebound follows a sharp slide that briefly pulled the token below $85,000 — extending an approximately 33% correction from the record highs above $126,000 set in early October.

SEC remarks and Vanguard’s policy shift bolster sentiment

A large part of the renewed optimism stemmed from comments by SEC Chair Paul Atkins, who reaffirmed that the regulator intends to roll out a revamped framework for crypto markets, including a proposed “innovation exemption.”
The initiative is expected to provide updated guidance surrounding the issuance, storage, and trading of digital assets as the agency works to modernize its oversight.

Institutional confidence also received a boost from Vanguard’s surprise policy reversal. The asset-management giant — the second largest in the world — said it will begin permitting trades in cryptocurrency-linked ETFs and mutual funds on its brokerage platform this week.
The decision opens the door to regulated crypto exposure for millions of investors and highlights the asset class’s increasing acceptance across traditional finance.

Bitcoin also drew support from rising expectations of a Federal Reserve rate cut next week, a development that often boosts appetite for dollar-priced risk assets.

Even so, the violent price swings seen recently have kept some traders wary, with many questioning whether the rally can sustain itself.

Altcoins surge as broader crypto market rebounds

The upswing extended across the digital asset landscape.

Ethereum, the second-largest cryptocurrency, jumped 10% to $3,062.92.

XRP climbed 9.3% to $2.20, maintaining its position as the third-biggest token by market cap.

Solana rallied 12%, Cardano surged 14%, and Polygon strengthened 7%.

In the meme-token category, Dogecoin advanced 11% and $TRUMP gained 5.7%.

The U.S. dollar edged lower on Wednesday, with markets increasingly convinced that the Federal Reserve will deliver a rate cut next week. The British pound, meanwhile, continued to hold steady after gaining ground following last week’s U.K. budget announcement.

At 04:30 ET (09:30 GMT), the Dollar Index — which measures the currency against six major peers — slipped 0.2% to 99.107, positioning it for a yearly drop exceeding 8%.

Fed expectations dominate as Hassett speculation builds

Momentum toward a December 10 rate cut has strengthened as recent U.S. data has pointed to cooling economic conditions, placing pressure on the greenback.

Fresh indicators are also on deck this week, with the ADP private-sector employment report due later Wednesday and the November PCE inflation reading scheduled for Friday.

According to the CME FedWatch tool, traders now assign an 88% probability to a 25-basis-point cut — a sharp increase from the roughly 63% likelihood priced one month ago.

The dollar has also been weighed down by speculation that White House economic adviser Kevin Hassett could be chosen as the next Federal Reserve Chair. Hassett, who previously served as a senior economist at the central bank, is considered an ally of President Donald Trump and a proponent of quicker interest-rate reductions.

ING analysts noted: “Heading into Thanksgiving, betting markets gave roughly a 35% probability for both Hassett and [Christopher] Waller as the next Fed chair. This week, Hassett’s probability has shot up to 85%.”

They added: “Given perceptions of Hassett as quite dovish, the dollar is a little weaker across the board, the yield curve has seen some modest bullish steepening and risk assets have turned gently bid. This could be the dominant theme until next week’s FOMC meeting.”

Euro advances toward strongest yearly gain since 2017

EUR/USD climbed 0.2% to 1.1643, leaving the currency pair on track for annual gains above 12% — a performance that would mark its best year in eight years.

The European Central Bank is set to meet in mid-December, with markets widely expecting policymakers to keep rates unchanged after lowering them by 200 basis points between January and June.

Survey data released earlier Wednesday showed that eurozone business activity grew at its fastest pace in two and a half years in November, thanks to a strong services sector offsetting continued weakness in manufacturing.

ING commented: “If EUR/USD can nudge through the 1.1655/70 area – perhaps with the help of some softer US data – we could see a decent move through 1.17. We retain a year-end target of 1.18.”

GBP/USD rose 0.3% to 1.3259, trading near its highest level in a month. Analysts at Goldman Sachs said last week’s fiscal update delivered “a set of measures fairly close to market expectations,” avoiding the potential pitfalls that could have undermined the currency.

They added that the announcement “steered clear of the more currency-negative outcomes of either a larger near-term fiscal contraction than anticipated or of delivering too little of an overall consolidation that sees a reintroduction of U.K. fiscal risk premium in the currency.”

Aussie dollar rises on upbeat GDP; yen holds firm

Across Asian markets, USD/JPY eased 0.1% to 155.75, with rising expectations that the Bank of Japan could lift interest rates this month — a stark contrast with the U.S., where an 85% chance of a Fed cut is already priced in.

USD/CNY slipped 0.1% to 7.0654. AUD/USD gained 0.3% to 0.6576, reaching a one-month high after Australia’s third-quarter GDP report showed that annual growth accelerated to 2.1%, the strongest pace in two years, even as quarterly growth fell short of forecasts at 0.4%.

U.S. markets looked steadier on Wednesday, with futures edging upward after the risk-off mood at the start of the week began to ease. Bitcoin (COIN:BTCUSD) staged a strong comeback above $90,000, government bond markets calmed, and Marvell Technology (NASDAQ:MRVL) surged in after-hours trading following a major acquisition announcement and stronger-than-expected guidance. Traders are also preparing for key U.S. hiring data, while oil prices firm amid stalled Russia-Ukraine peace discussions.

U.S. futures point to a firmer open

American equity futures signaled a positive start, suggesting the sharp moves in crypto and fixed income earlier in the week may be losing momentum.
As of 02:27 ET, Dow futures were up 0.2% (105 points), S&P 500 futures gained 0.2% (15 points), and Nasdaq 100 futures rose 0.2% (63 points).

Wall Street’s main indices finished higher on Tuesday, shrugging off the early-week pullback as attention shifted back to the likelihood of a Federal Reserve rate cut at the December 9–10 meeting. According to CME FedWatch, markets are pricing an 87% chance of a quarter-point reduction, reflecting expectations that policymakers will prioritize supporting a weakening labor market even with inflation still sticky.

Adding to the policy backdrop, President Donald Trump said he intends to announce his pick for the next Fed Chair in early 2026 and has narrowed the choice to a single candidate. White House economic adviser Kevin Hassett is widely believed to be the leading contender and is expected to favor easier monetary conditions.

Crypto and bond markets stabilize

Bitcoin rebounded sharply after a steep selloff earlier in the week.
At 02:58 ET, the cryptocurrency was up nearly 7% at $93,016, trading at its highest level in around two weeks, though still well off its record high set about six weeks ago.

The earlier slump stemmed from speculation that the Bank of Japan may lift interest rates, triggering a global bond selloff that spilled over into risk assets—including crypto. The downturn hit Bitcoin-linked companies particularly hard, especially Michael Saylor’s Strategy (NASDAQ:MSTR), which disclosed holdings of around 650,000 BTC and subsequently cut its annual earnings forecast.

After steep losses on Monday, Strategy’s shares clawed back some ground Tuesday and saw slight gains in extended trading.

Marvell makes a major AI-focused acquisition

Marvell Technology confirmed a multibillion-dollar agreement to acquire AI-chip startup Celestial AI, part of its push to expand its computing and data-center capabilities amid soaring demand for artificial intelligence infrastructure.

The $3.25 billion purchase gives Marvell access to Celestial’s photonics technology, which uses light rather than electrical signals to move data between AI accelerators and memory chips—an approach expected to be adopted by major cloud providers as soon as 2027.

Marvell expects the deal to begin contributing meaningful revenue in the second half of fiscal 2028. CEO Matt Murphy told investors the company anticipates roughly $10 billion in revenue next fiscal year, driven by a 25% increase in data-center revenue and a 20% rise in its custom chip business.

The stock, which has slumped this year over competitive concerns and debate about an “AI bubble,” jumped more than 8% in after-hours trading.

Key ADP hiring data on deck

Attention turns next to November’s ADP private-payrolls report. Economists expect job creation to slow sharply to 5,000 positions, down from 42,000 in October.

Labor market data has taken on greater significance due to a shortage of official economic releases during the recent U.S. government shutdown. October’s nonfarm payrolls report was scrapped entirely and will be merged with November’s dataset—meaning October’s unemployment rate will never be published.

With limited data available, investors and policymakers are relying more heavily on ADP for clues on employment conditions.

Oil prices edge higher

Crude oil prices inched upward as prospects for an immediate peace agreement between Russia and Ukraine faded, keeping supply risks elevated. Brent crude rose 0.6% to $62.80 per barrel, while WTI advanced 0.7% to $59.06.

A meeting late Tuesday between Russian President Vladimir Putin and U.S. envoys Steve Witkoff and Jared Kushner ended without progress on a potential agreement. Market participants are watching closely to see whether any breakthrough could eventually lead to a reduction in sanctions on Russian energy producers.

Meanwhile, U.S. crude stocks increased by 2.48 million barrels last week, according to API data, stoking fresh worries about oversupply. Official inventory data from the Energy Information Administration is due later today.

European equity markets traded slightly higher on Wednesday, with investors assessing fresh activity data and looking ahead to remarks from European Central Bank President Christine Lagarde later in the day.

At 08:05 GMT, Germany’s DAX was up 0.4% and France’s CAC 40 gained 0.1%, while the UK’s FTSE 100 slipped 0.1%.

Positive Lead from Asia

European shares received a generally upbeat handover from Asia, where expectations for a U.S. Federal Reserve rate cut next week continued to build. U.S. tech stocks helped lift Wall Street to a modestly higher close overnight.

With December historically a supportive month for equities, sentiment remains constructive. Markets now price an 85% chance of a 25-basis-point Fed cut next week.

Lagarde to Speak Later Today

ECB President Christine Lagarde is scheduled to deliver a speech later in the session, and investors will analyze her comments for indications on the Bank’s interest-rate path.

Eurozone inflation ticked up slightly to 2.2% in November from 2.1% in October—still close to the ECB’s 2% target.

“We have practically achieved (our goal), and the inflation rate will continue to fluctuate around this value in the near future,” ECB policymaker Joachim Nagel, who also heads the Bundesbank, told Stern magazine on Tuesday.

Later today, the Eurozone composite PMI for November will be released, with expectations pointing to a gradual improvement in economic conditions.

Corporate Updates

Inditex reported a 10.6% increase in revenue for the four weeks to 1 December, underlining its resilience as consumer sentiment softens across the apparel industry.

Hugo Boss (TG:BOSS) announced plans to target an operating profit margin of roughly 12% over the medium to long term as part of a strategic overhaul.

Airbus (EU:AIR) cut its 2025 commercial aircraft delivery forecast to around 790 units, citing fuselage-panel quality issues affecting the A320 programme.

Oil Prices Edge Up

Crude prices ticked higher on Wednesday amid diminishing hopes for a near-term resolution to the war in Ukraine, keeping supply risks elevated.

Brent rose 0.5% to $62.74 a barrel, while U.S. West Texas Intermediate also gained 0.5% to $58.94.

Talks late Tuesday between Russia’s President Vladimir Putin and U.S. envoys Steve Witkoff and Jared Kushner ended without a peace agreement, leaving existing sanctions intact. A breakthrough could ease constraints on Russian oil supply.

Oil markets are watching for developments closely. Meanwhile, rising U.S. crude inventories added to oversupply concerns after API data showed a 2.48 million-barrel build for the week ending 28 November. Official figures from the U.S. Energy Information Administration are due later today.

UK equities opened weaker on Wednesday, with the FTSE 100 turning negative even as the pound regained ground against the dollar, moving back toward the $1.32 level. European markets showed a mixed tone.

By 08:23 GMT, the FTSE 100 was down 0.1%, while GBP/USD ticked up 0.2% to 1.32. Germany’s DAX rose 0.3%, and France’s CAC 40 dipped 0.09%.

UK Corporate Highlights

Paragon Banking Group PLC (LSE:PAG)
Paragon delivered a 4% beat on pre-provision profit but cautioned investors that tighter margins lie ahead. Statutory profit before tax for the year to 30 September rose 1.1% to £256.5 million. Operating profit before adjusting items nudged up 0.4% to £293.9 million, while pre-provision profit grew a stronger 5.9% to £335.8 million. For 2026, the group expects a net interest margin of 290–300 basis points, indicating possible earnings pressure.

Spire Healthcare Group plc (LSE:SPI)
Spire said it now anticipates FY25 adjusted EBITDA to land near the bottom of its £270–£285 million range, despite solid recent trading. Revenue grew 3.6% in the July–October period, following 4.9% growth in the first half.

Weir Group PLC (LSE:WEIR)
Weir reaffirmed its outlook from July, maintaining expectations for growth in both constant-currency revenue and operating profit. The group continues to target around 20% operating margins and free operating cash conversion in the 90–100% range.

Bloomsbury Publishing PLC (LSE:BMY)
Bloomsbury unveiled a strategic partnership with Google Cloud to bolster innovation across AI-driven learning tools and core publishing systems. The collaboration will leverage technologies such as NotebookLM, Vertex AI, Gemini Enterprise, and LearnLM—Google’s optimized model for learning and knowledge synthesis.

Smiths Group PLC (LSE:SMIN)
Smiths Group will divest its Smiths Detection division to CVC Capital Partners–advised funds for an enterprise value of £2.0 billion, equivalent to 16.3× headline operating profit. Combined with the recent sale of Smiths Interconnect, the group expects total net proceeds of roughly £1.85 billion. Completion is targeted for the second half of 2026, pending regulatory approvals and consultation with France’s works council.

HSBC Holdings PLC (LSE:HSBA)
HSBC has announced the appointment of Brendan Nelson as Group Chair. Nelson, who stepped in as interim chair on 1 October, joined the board in September 2023. His appointment follows an extensive internal and external search process.

Thames Water
Thames Water warned of a “material uncertainty which may cast significant doubt” on its ability to continue operating as a going concern. Serving 16 million customers in southeast England, the company signaled that a move into special administration—a temporary form of government control—could occur “in the very near term” if terms for a lender-led takeover are not finalized.

NextEnergy Solar Fund Limited (LSE:NESF) reported a 3.2% decline in net asset value for the first half of its financial year, attributing the decrease mainly to reduced long-term power price assumptions.

As of 30 September, the fund’s NAV stood at 88.8p per share, down 2.9p from the previous period. The shift in power price expectations—driven by falling gas prices—cut NAV by 2.2p per share, while the quarterly dividend shaved off an additional 2.5p. These headwinds were partially offset by savings from a lower asset-management fee, which added 1.3p per share.

Despite the NAV downturn, operational performance was strong: portfolio generation came in 7.6% above budget, supported by solar irradiation levels around 13% higher than forecast.

Gearing edged up to 49.2% of gross asset value from 48.4% in March 2025, largely reflecting softer asset valuations. The company’s £205 million revolving credit facility now has roughly £151.9 million drawn, compared with £144.9 million at the March reporting date.

With gearing nearing the fund’s 50% GAV limit—and the preference share debt-to-enterprise-value ratio already above its threshold at 54.8%—NextEnergy has limited room for additional borrowing or for resuming share buybacks. Its buyback programme remains on hold after completing about 58% (£11.5 million) of planned purchases.

NextEnergy is undertaking a strategic review that may broaden its disposal plans beyond the current 100MW target to include additional subsidy-backed assets with stronger market appeal. Further details are expected in 2026.

The company reaffirmed its dividend guidance for FY26, projecting coverage of 1.1–1.3 times. With over 70% of annual generation already achieved in the first half and running ahead of budget, management highlighted strong cash-flow visibility.

Looking forward, the fund’s revenue profile remains well protected against softer power prices, with approximately 73% of FY27 revenue already contracted and about 64% contracted for FY28.

Smiths Group (LSE:SMIN) has reached a deal to divest its security screening and threat-detection division, Smiths Detection, to funds managed by CVC Capital Partners for £2.0 billion ($2.64 billion), inclusive of cash and debt.

The engineering group said on Wednesday that it expects the sale to close in the second half of 2026. Smiths Group intends to return a substantial share of the net proceeds to shareholders, with further information on the method and timing to be provided at a later stage.

The latest divestment comes on the heels of October’s announced sale of Smiths Interconnect. Combined, the two transactions carry a total enterprise value of £3.3 billion, according to the London-based company.

Senior plc (LSE:SNR) has secured a new multi-year agreement with Airbus (EU:AIR) for the supply of aerospace standard parts, the company confirmed on Wednesday.

The contract spans the design, qualification, and production of standard components used in fluid-conveyance systems. These parts will be fitted across Airbus’s single-aisle and dual-aisle commercial aircraft programmes, with additional long-term potential in the aftermarket for spares and repairs.

Initial deliveries are expected to start in the first quarter of 2026 from Senior’s European operations. The added product lines will further strengthen the group’s portfolio of pressed, formed, and high-precision engineered components.

The deal marks a significant milestone for Senior, aligning with management’s focus on its “standard parts” strategy, which has been a priority for several years. The agreement follows extensive groundwork, and analysts suggest there is still meaningful room for growth with Airbus in this segment.

Production is set to ramp up fully in 2027. Senior’s shares trade at 182.60p, and some analysts continue to rate the stock a buy with a 230.00p price target, implying roughly 26% potential upside.

The eurozone’s private-sector economy strengthened again in November, delivering its fastest pace of growth since mid-2023, according to the latest HCOB PMI figures published on Wednesday.

The HCOB Eurozone Composite PMI Output Index rose to 52.8 in November from 52.5 the month before, extending its upward streak to six consecutive months and reaching its highest reading since May 2023. The index also moved above its long-term average of 52.4.

Both major sectors contributed to the improvement, though services remained the clear outperformer. The Services PMI Business Activity Index increased to 53.6 from 53.0 in October, marking a 30-month high. Manufacturing, by contrast, saw its output growth cool to its slowest pace in nine months.

All five countries with composite data posted expansion. Ireland delivered its strongest performance in three and a half years, while Spain delivered the second-fastest growth in the group despite easing from October’s 2025 peak. Italy registered its best output expansion since April 2023, and France returned to growth for the first time in 15 months. Germany, meanwhile, continued to grow but at a more moderate rate compared with October’s 29-month high.

New business increased for the fourth month running, matching October’s two-and-a-half-year peak. This rise came entirely from services, as manufacturers saw a slight drop in new orders.

Employment edged higher for the eighth time in nine months, though the pace of job creation was minimal. Service-sector firms continued to hire, while factory employment recorded its steepest decline since April.

Business sentiment improved across both areas of the economy, though optimism remained below longer-term norms. Input cost pressures intensified, reaching an eight-month high, driven by rising service-sector expenses and a renewed uptick in manufacturers’ purchase prices. Conversely, output-price inflation eased to its lowest level in six months.

Dr. Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, commented: “The service sector in the eurozone is showing clear signs of recovery. The strong performance in the service sector was even enough to more than offset the weakness in the manufacturing sector, meaning that economic output in the eurozone grew slightly faster in November than in the previous month.”

He added that the recovery has gained breadth, with the services sector expanding for six consecutive months across much of the region. Looking ahead, he expects Germany’s expansionary fiscal stance and Spain’s ongoing strong growth to provide tailwinds for the eurozone economy over the next year.

SDI Group plc (LSE:SDI) has delivered strong interim results for the first half of FY26, supported by notable contract wins and the successful integration of a recent acquisition that contributed positively to earnings. Revenue rose 10.1%, reflecting a combination of organic expansion and acquisitive growth, while gross margins also improved. The company highlighted continued progress on innovation across its portfolio businesses, which has led to new product launches and wider market penetration. Strengthening of the management team further underpins SDI’s plans for sustainable long-term growth. Despite a challenging macro backdrop, the acquisition pipeline remains active, and the group remains confident in its strategic direction.

SDI’s outlook is supported by solid financial performance and constructive commentary from its latest earnings call. Strategic acquisitions and operational efficiencies continue to be key drivers, even as pockets of weaker organic demand and broader market uncertainty present headwinds. Technical indicators suggest bearish momentum, adding an element of caution to the near-term view.

More about SDI Group

SDI Group plc is a diversified group of small and medium-sized companies specialising in the design and manufacture of niche industrial and scientific products. Its portfolio spans laboratory equipment, scientific and industrial sensors, precision optics, and instrumentation serving sectors such as life sciences, healthcare, plastics and packaging, and advanced manufacturing.