Weekly Market Review - 02-11-2026

2 days ago

4 min read

This week’s Weekly Market Review looks at a weaker period for global equity markets, with technology stocks experiencing the largest losses. We also cover Budget 2026, the latest US inflation figures, movements across oil and precious metals, the ECB’s rate decision and the approval of the UK’s Sea Link power project.

Market Recap.

Equity markets finished lower across both the UK and US, with technology stocks experiencing the sharpest losses.

The FTSE 100 ETF proved relatively resilient, falling 0.46% over the week. In the United States, the Dow Jones Industrial Average ETF declined 1.08%, while the broader S&P 500 ETF fell 1.40%.

Technology stocks saw considerably greater weakness, with the Nasdaq 100 ETF dropping 3.21%. This left US technology shares as the clear underperformer, while the UK market recorded the smallest decline of the four.

News.

Chancellor John Healey delivered Budget 2026 on 28th October, setting out measures affecting household costs, taxation, savings and businesses.

The headline rates of income tax, National Insurance and VAT were left unchanged, while the temporary 5p cut in fuel duty and the 0% VAT rate on domestic electricity were extended until July 2027. Changes relevant to savers and investors were also confirmed. From April 2027, the basic, higher and additional rates applying to savings and property income will be 24%, 44% and 49% respectively. The annual cash ISA subscription limit will remain at £20,000.

Inflation.

US inflation increased again in September according to the Personal Consumption Expenditures Price Index, the Federal Reserve's preferred measure of inflation.

Headline PCE inflation rose to 3.60% year-on-year, up from 3.40% in August. Prices increased 0.50% over the month, compared with 0.30% previously. Core PCE, which excludes food and energy, increased 0.30% during September and was 3.10% higher than a year earlier. The figures show that inflation remains above the Federal Reserve's 2% target and continues to influence expectations around the future path of US interest rates.

Central Banks.

The European Central Bank left its three key interest rates unchanged at its meeting on 29th October. The deposit facility rate remains at 2.50%, with the main refinancing rate at 2.65% and the marginal lending facility at 2.90%. The ECB said rising energy prices continued to create upside risks for inflation while also threatening economic growth. Underlying inflation has remained broadly stable and wages have not yet shown a material response to the energy shock. Policymakers reiterated that future interest-rate decisions will remain dependent on incoming economic data rather than following a predetermined path.

Commodities.

Oil prices moved lower during Monday's trading as renewed diplomatic efforts involving the US and Iran eased some immediate concerns around Middle Eastern supplies.

Compared with last week's quoted figures, WTI crude fell 0.26% to $100.78 per barrel, while Brent declined 4.08% to $109.79.

Precious metals were also lower week-on-week despite recovering during Monday's session. Gold fell 2.77% to $3,906.21 per troy ounce, while silver dropped 7.88% to $50.02. Higher US inflation and expectations that interest rates may remain elevated weighed heavily on precious metals towards the end of last week.

ESG.

The UK Government has approved Sea Link, a major new electricity connection between Suffolk and Kent designed to strengthen Britain's power network.

The 2GW undersea link will increase the amount of electricity that can be transferred between the two regions, helping renewable generation reach homes and businesses where it is needed. The project has now received development consent following its examination by the Planning Inspectorate. Expanding transmission capacity is an important part of accommodating greater renewable generation, while reducing network constraints that can increase the cost of balancing Britain's electricity system.

Geopolitics.

Supply-chain security and critical minerals were a major focus as G20 foreign ministers met in Atlanta on 30th and 31st October.

Energy security and resilient supply chains featured prominently in the discussions. On the sidelines, foreign ministers from the US, Australia, India and Japan also agreed to strengthen cooperation through the Quad.

The four countries committed to building more reliable and open global supply chains and raised concerns about arbitrary export restrictions, economic coercion and other practices capable of disrupting critical industries. Critical minerals have become increasingly important to advanced technology, energy, manufacturing and defence supply chains.

Week Ahead.

United States

Labour-market data will dominate the US calendar this week. September's Job Openings and Labor Turnover Survey is released on Tuesday 3rd November, providing an update on vacancies, hiring and employee turnover.

Preliminary third-quarter productivity and labour-cost figures follow on Thursday 5th. The main release comes on Friday 6th with October's Employment Situation report, including nonfarm payrolls, unemployment and wage growth. The figures will provide another important indication of labour-market conditions as investors assess the outlook for US interest rates.

United Kingdom The Bank of England's latest interest-rate decision will be the main focus in the UK this week.

Final October Services and Composite PMI figures are due on Wednesday 4th November, providing more detail on business activity and cost pressures across the UK's dominant services sector.

The Bank of England announces its monetary-policy decision on Thursday 5th. Bank Rate currently stands at 3.75%, and attention will focus on the vote split, updated economic forecasts and policymakers' assessment of whether recent increases in inflation and energy costs require tighter monetary policy.

Eurozone

Inflation and consumer activity will be in focus across the Eurozone this week.

Eurostat will publish its preliminary estimate of October inflation on Tuesday 3rd November, providing the first indication of whether recent energy-price pressures have pushed headline inflation higher across the currency bloc.

September's industrial producer-price figures follow on Wednesday 4th, before retail-sales data on Thursday 5th. Together, the releases will provide further evidence on inflationary pressures and household demand following last week's decision by the European Central Bank to keep interest rates unchanged.

It is important to note that the geopolitical situation remains highly fluid, and developments are changing rapidly. As such, the outlook may shift quickly as new information emerges.