News & Views

Markets remained cautious over the week as investors navigated persistent inflation concerns, mixed economic signals and restrained central bank messaging. UK and US equities moved modestly lower overall, though technology stocks outperformed. Commodities showed a clear split, with precious metals benefiting from safe-haven demand while energy prices stayed subdued. Geopolitical tensions and policy uncertainty continued to shape sentiment as markets look further into 2026.

2025 was a strong year for global equities, with most major regions delivering double-digit returns. Asia ex-Japan led on AI-driven tech gains and China stimulus, while Europe benefited from ECB rate cuts and Germany’s €500bn investment plan. Japan attracted foreign inflows following policy normalisation and corporate reform. Despite tariff volatility, resilient earnings and easing monetary policy supported positive returns across North America and the UK.

Markets ended the year on a steady footing as central banks cautiously shifted toward supporting growth amid easing inflation. The UK and US delivered further rate cuts, while the ECB held policy steady as eurozone inflation aligned with target. Market performance was mixed, with strength in banking, fintech and Asian technology offset by weakness in parts of emerging markets. Multi-asset portfolios benefited from diversification, helping to cushion volatility and position in