News & Views

UK equities proved resilient over the week, while US markets moved lower as technology stocks led the decline. Renewed fighting between the United States and Iran drove oil prices sharply higher and revived inflation concerns, while UK politics entered a new chapter with Andy Burnham preparing to take office. Looking ahead, markets will focus on UK inflation data and the ECB’s latest interest-rate decision.

Markets edged lower this week as renewed US-Iran hostilities pushed energy prices higher and revived inflation concerns. While the S&P 500 remained broadly stable, UK equities came under greater pressure. Elsewhere, America’s AI infrastructure boom began feeding through to technology and electricity costs, the ECB reassessed its interest-rate outlook, and attention turned to the economic impact of extreme heat and Europe’s simplified sustainability reporting rules.

Markets moved higher over the week as investor sentiment improved across both UK and US equities. Gains were supported by renewed appetite for risk assets, although investors continued to monitor inflation pressures, higher energy prices and ongoing geopolitical tensions in the Middle East. The week also highlighted the growing economic importance of climate-related disruption, with the UK heatwave adding pressure on infrastructure, public services and household costs.