News & Views

This week, UK equities led the way as the FTSE 100 moved higher, while US markets delivered more modest gains and technology stocks edged slightly lower. Away from markets, England’s World Cup win offered a boost to national sentiment and consumer-facing sectors, while inflation, housing affordability and energy costs remained key themes for the UK economy.

This week, markets reflected a more cautious tone as investors balanced stronger blue-chip performance against renewed pressure on broader US equities and technology stocks. Political developments in the UK, easing inflation expectations in the Eurozone and falling commodity prices all shaped sentiment, while central banks continued to warn that stretched valuations, particularly around AI, could create risks if optimism begins to unwind.

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.

Markets began March with a firmer tone, as improving risk appetite supported UK equities and a rebound in technology shares, even as geopolitical tensions in the Middle East introduced fresh uncertainty. Alongside steady disinflation trends in the US and renewed volatility in commodity markets, this week’s developments highlight the delicate balance between economic resilience and evolving global risks.

Markets ended September with diverging performances, as UK equities outpaced global peers while U.S. indices split between industrial strength and tech weakness. Safe-haven demand lifted gold to new records, while oil prices fluctuated on supply headlines. Central bankers struck a cautious tone, with the Bank of England signalling confidence in disinflation and the ECB describing inflation as “reasonably benign.”