Market Updates

The Fed appears set to cut rates next week amid a cooling U.S. labor market and delayed data, supporting a pro-risk stance even as risks remain from the tension between sticky inflation and rising debt pressures, a challenge demonstrated globally by the UK.

Markets face a packed week of global data and central bank speeches after delayed US prints boosted expectations of a December Fed cut and mixed Chinese PMIs added to the macro uncertainty.

Despite earlier outperformance and improving business activity, European equities need more pro-business policies and deeper capital markets to spur a sustained rebound, with current opportunities strongest in financials, utilities, healthcare, and longer-term defense, industrial and AI themes.

A busy week lies ahead with key UK and US data, central bank speeches, and major earnings, following a mixed week for markets marked by cooling US labour signals, divided Fed views, and rising uncertainty after the cancellation of October CPI data.

With the U.S. shutdown over and economic data set to resume, markets are focused on confirming a cooling labour backdrop that could enable Fed rate cuts, reinforcing a pro-risk stance tilted toward U.S. stocks and AI, with Nvidia’s upcoming earnings a pivotal indicator.

Markets await delayed US economic data this week, but with figures likely stale and a heavy calendar of central bank speakers, earnings, and global indicators, the outlook remains uncertain amid fading post-shutdown optimism and continued signs of weak demand in China.

AI’s rapid expansion continues to drive markets higher, shaping global competition, energy demand, and the future of finance as discussions at the 2026 Outlook Forum highlighted its transformative scale and growing influence.

Global markets face a busy week of economic data, central bank commentary, and earnings amid lingering concerns over slowing growth, with subdued early trading ahead of COP30, mixed US data highlighting labour market weakness and fading sentiment, the BoE holding rates steady amid inflation risks, and China’s trade data underscoring continued softness in global demand.

The U.S.-China trade truce and strong mega-cap tech earnings highlight that powerful structural forces like AI and policy constraints are driving near-term market returns, reinforcing an overweight stance on U.S. equities supported by Fed rate cuts.

The week ahead features a busy macro and central bank calendar — including US election day, PMI releases, key Fed and ECB speakers, and the BoE’s expected hold at 4% — while markets enter the week buoyed by stronger risk sentiment, a modest Fed rate cut with hawkish guidance, and signs of stabilisation in China’s manufacturing outlook.