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Weekly Market Review - 03-11-2025

  • Writer: Eloise Bell
    Eloise Bell
  • Nov 3
  • 4 min read

Global markets began November on a cautiously positive note as earnings resilience, easing trade tensions, and a more balanced policy outlook lifted investor sentiment. The week saw broad equity gains, led by U.S. technology names, while European shares benefited from improving business confidence and stable inflation prints. In the UK, attention turned to the upcoming Bank of England meeting and November Budget, with investors weighing the prospect of modest rate cuts against tighter fiscal messaging. Overall, risk appetite improved amid signs that growth and inflation are converging toward a more sustainable balance.



Market Recap.


Global equities advanced last week, led by gains in technology shares and improved risk sentiment. The FTSE 100 ETF rose 0.68%, supported by strength in energy and financials. In all, the major indices finished higher: the Dow Jones Industrial Average ETF gained 1.61%, the S&P 500 ETF climbed 1.19%, and the Nasdaq 100 ETF outperformed with a 1.95% rise. Optimism over resilient corporate earnings and expectations of gradual monetary easing underpinned the advance, while lower volatility suggested renewed investor confidence heading into November. 

 


News.


UK house-price growth has slowed ahead of the November budget, according to housing-market data from Nationwide. The average price of a home rose just 0.3 % in October (to £272,226), down from a 0.5 % gain in September. Annually, growth edged up to 2.4 % from 2.2 % the previous month. Analysts say many buyers are sitting on the sidelines in anticipation of possible new property taxes on higher-value homes. Retail listings also show fewer of the typical “autumn bounce” in asking prices. 



Inflation. 


UK inflation held at 3.80% year-on-year in September, unchanged from the previous month and below expectations, bolstering hopes the Bank of England may begin easing policy soon. According to the Office for National Statistics, lower fuel and food prices offset rising housing costs, helping to stabilise overall inflation. The data came ahead of the government’s upcoming Budget, where Chancellor Rachel Reeves is expected to focus on fiscal discipline. Economists said the steady reading strengthens the case for a rate cut at the BoE’s November meeting, with markets increasingly pricing in a modest move. 



Central Banks.


The ECB kept policy unchanged last week, saying the economic outlook remains broadly consistent with its projections for slow but steady growth, as tariff headwinds are offset by resilient consumption. According to the Bank’s latest business survey, firms across the eurozone reported improving conditions and a more positive outlook for demand and investment. The findings point to a tentative rebound in activity, supported by easing financing conditions and accelerating adoption of artificial intelligence, which companies expect to enhance productivity. However, respondents warned that labour shortages and geopolitical uncertainty continue to pose risks to the recovery. 



Commodities.


Gold hovered near record highs, trading around US $4,004/oz. Silver also climbed, though a precise figure for that date was not found in reliable data. On the energy side, oil extended recent gains: Brent crude oil reached US $65.01/barrel and West Texas Intermediate (WTI) was around US $61.19/barrel. 



ESG.


The Bank of England is under pressure to improve communication around its inflation and growth forecasts after criticism from Parliament’s Treasury Committee. Chair Harriett Baldwin said the Bank must “rebuild credibility” by being more transparent about its assumptions, following past misjudgements on inflation persistence. Although headline inflation has eased, it remains above the 2.00% target, while UK growth continues to stagnate. Governor Andrew Bailey has hinted that rate cuts could come in 2025 if price pressures continue to moderate, but lawmakers warn clearer messaging is essential to restore public and market confidence. 



Geopolitics.


Tensions between the European Union and China eased slightly last week after both sides agreed to continue engagement on export-control policies. Following high-level talks in Brussels, China paused its planned expansion of rare-earth export restrictions for at least a year, while the EU reaffirmed its commitment to maintaining open dialogue. The move marks a tentative step toward stabilising relations after months of strain over critical-material access and semiconductor supply chains. Markets welcomed the development as a sign of reduced near-term trade risk, though structural rivalry remains a key longer-term concern. 



Week Ahead.


United States: All eyes turn to Friday’s nonfarm payrolls (8th Nov), expected to show slower job growth and steady wage gains around 3.80% y/y. Earlier in the week, the ISM Services PMI (5th Nov) will provide insight into consumer-driven momentum ahead of the holiday season. 


Eurozone: Wednesday’s retail sales (6th Nov) and final PMI readings (7th Nov) will gauge consumer demand and manufacturing stabilisation after a run of weak data. Investors will also watch for any follow-up remarks from ECB officials on growth and inflation. 


United Kingdom: The Bank of England policy meeting (6th Nov) dominates the calendar, with markets split on whether a modest rate cut could follow stable inflation data. The Halifax House Price Index (7th Nov) will also offer clues on property-market resilience heading into year-end. 




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