Yen Strengthens as Meta Tumbles and Oil Extends Losses

The yen firmed to 154.01 per US dollar on Friday after Japan’s new finance minister said the government was monitoring foreign exchange moves closely, while Tokyo’s inflation data showed prices rising 2.8% year on year. In the US, Meta shares fell 11.3% and Microsoft slipped 2.9%, dragging the Nasdaq 1.6% lower, though Alphabet rose 2.5% and Amazon surged 9% after-hours on strong cloud demand. Brent crude eased to $64.88 a barrel, heading for its third monthly decline as the stronger dollar and weak Chinese factory data weighed on prices.

Equities

The FTSE 100 ended Thursday’s session flat, halting an eight-day winning streak after touching record highs earlier in the week. The index was weighed down by disappointing results from advertising group WPP and weakness in automobile stocks, while gains in the banking sector offered some balance. The mid-cap FTSE 250 slipped 0.77%, marking its sharpest daily drop in two weeks.

WPP shares fell 16% to their lowest level in nearly twenty years after new chief executive Cindy Rose warned that full-year profits would fall short of expectations. The company cited a larger-than-anticipated decline in third-quarter net revenue at its key media buying division, which offset progress in other business areas. Standard Chartered gained 3.6% after announcing that it would reach a key profitability target a year ahead of schedule, supported by strong wealth management growth and a better-than-expected third-quarter profit. Shell added 0.3% after reporting third-quarter results that beat analyst forecasts, helped by steady energy prices and strong trading performance. In contrast, automobile stocks fell around 2% after Volkswagen booked a €4.7 billion charge linked to Porsche’s revised electric vehicle strategy. Shares of Shawbrook rose 6.7% following its successful listing in London, the city’s largest IPO in two years.

Across the Atlantic, Wall Street fell on Thursday as major technology names pulled markets lower. The Dow Jones Industrial Average slipped 0.23%, while the S&P 500 dropped 0.99% and the Nasdaq Composite fell 1.57%. The decline followed a series of record highs earlier in the week and came amid renewed caution over interest rates and corporate spending.

Meta shares sank 11.3%—their largest one-day fall in three years—after the company forecast “notably larger” capital expenditure next year due to heavier investment in artificial intelligence. Microsoft closed 2.9% lower after revealing record quarterly capital spending of nearly $35 billion and signalling more to come. Alphabet rose 2.5% after reporting stronger-than-expected earnings, driven by steady advertising and cloud revenue growth. Amazon shares fell 3% during the session but rebounded 9% in after-hours trading thanks to solid demand for its cloud computing services. Apple shares edged higher after-hours, supported by robust iPhone sales despite supply constraints. Meanwhile, Nvidia slipped 2% after briefly becoming the first listed company to surpass $5 trillion in market value earlier in the week.

Forex & Commodities

The yen strengthened in Asian trading on Friday, trading at 154.01 per US dollar after Japan’s new finance minister said the government was monitoring currency movements with a high sense of urgency. The move came as data showed Tokyo’s core consumer prices rose 2.8% year on year in October, remaining above the Bank of Japan’s target and complicating its policy outlook after holding rates steady on Thursday. The yen’s recovery followed a month of weakness in which it fell sharply against major currencies.

The US dollar held steady in early trading, with the dollar index at 99.47 after reaching a three-month high on Thursday. Traders scaled back expectations of another Federal Reserve rate cut in December, pricing in roughly three-quarters odds of a 25-basis-point move following Chair Jerome Powell’s remarks that another reduction was not guaranteed. The yield on the US 10-year Treasury stood at 4.0989%.

The euro edged higher to $1.1572 after the European Central Bank left interest rates unchanged at 2% for a third consecutive meeting, reiterating that policy was “in a good place” as economic risks ease. Sterling was unchanged at $1.3156 amid renewed domestic political pressure on the Treasury. The Australian dollar slipped to $0.6550 and the New Zealand dollar to $0.5733.

Spot gold eased to $4,011 per ounce early on Friday as the firmer dollar limited gains, although bullion remains up about 4% for October. Silver traded at $49.10, platinum at $1,621, and palladium at $1,462.

Oil prices weakened for a third straight month, with Brent crude at $64.88 a barrel and US West Texas Intermediate at $60.36. The stronger dollar and weak Chinese factory data weighed on sentiment, while rising global supply offset Western sanctions on Russian exports. OPEC+ members are expected to discuss a modest output increase at their meeting on Sunday.