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Weekly Market Review - 17-11-2025

  • Writer: Eloise Bell
    Eloise Bell
  • Nov 17
  • 4 min read

Markets delivered a mixed performance last week, with UK and US equities diverging as tech weakness weighed on major indices. Key regulatory, inflation and commodities news shaped sentiment, while central-bank commentary and progress on ESG and global climate negotiations added to the macro backdrop. Ahead, investors look to key data releases in the US, UK and Eurozone for clearer signals on year-end momentum.



Market Recap.


The FTSE 100 ETF slipped 0.68% amid mixed sector performance, while US equities delivered a more uneven showing. The Dow Jones Industrial Average ETF rose 0.77%, supported by strength in industrials and financials, but the S&P 500 ETF dipped 0.23% and the Nasdaq 100 ETF fell 1.01% as weakness in large-cap technology weighed on overall sentiment.

 


News.


Financial Conduct Authority deputy CEO Sarah Pritchard has called for stronger oversight of the tech firms that underpin the UK’s financial-system. She flagged recent cloud-service outages, which disrupted major institutions such as Lloyds Banking Group and the London Stock Exchange, as evidence of growing vulnerability.


Pritchard noted that although the FCA and the Bank of England were empowered earlier this year to designate "critical third-party" service providers, none have yet been designated. She emphasised the urgency of enhancing supply-chain resilience and cyber-controls to mitigate the systemic threat posed by reliance on a small number of key tech firms.



Inflation. 


According to data from Worldpanel by Numerator, UK grocery inflation slowed to 4.7% in the four weeks to 2 November, down from 5.2% the previous month. The result reflects supermarkets increasing promotional activity ahead of the holiday season, with spending on deals up 9.4% while full-price goods rose only 1.8%. Although this points to easing food inflation, overall consumption remains under pressure: grocery sales rose 3.2% year-on-year — well below the inflation rate, implying volumes are down. The slowdown offers a modest relief for households and could ease some inflationary pressure on the Bank of England (BoE).



Central Banks.


ECB Governing Council member Olaf Sleijpen said the risks to the euro-area inflation outlook are “balanced,” and affirmed that the current level of interest rates remains appropriate. He noted that inflation has hovered near the ECB’s 2.00% target this year and is expected to dip below 2.00% in 2026, due to statistical base effects. Sleijpen added that, if upcoming data remain consistent, there is “no reason” to assume a change in policy at the next meeting.



Commodities.


Gold edged higher over the week, supported by a softer US dollar and renewed expectations of Federal Reserve rate cuts early next year. The metal traded around US $4,015/oz, building on recent gains as investors sought defensive assets amid policy uncertainty. Silver also strengthened, touching US $49/oz, with analysts citing strong physical demand and momentum in precious-metal ETFs. On the energy side, oil remained under pressure. Brent crude hovered near US $62.80/barrel, while WTI held around US $58.40/barrel, with both benchmarks heading for a second weekly loss as supply concerns and weak demand signals weighed on sentiment.



ESG.


The EU and UK have agreed to begin formal negotiations on linking their carbon-trading systems, a move that signals renewed cross-Channel cooperation and could ultimately lower compliance costs for businesses operating in both markets. A future linkage would allow carbon allowances to be recognised across the two schemes, improving liquidity and creating a more predictable framework for long-term decarbonisation investment. Companies could also benefit from reduced trade frictions once alignment is achieved, particularly around carbon-border measures. Although technical talks will take time, the decision to move forward is viewed as a constructive step towards a more integrated and efficient carbon-pricing landscape in Europe.



Geopolitics.


At COP30 in Brazil, climate talks entered their final week. COP30 has increasingly become a stage for geopolitical positioning, as major economies use climate policy to shape global influence and trade relationships. Developing nations, led by China, India and Brazil, are pushing wealthier countries to firm up long-promised climate-finance commitments, turning funding into a strategic tool for diplomatic leverage. At the same time, the EU and US are using negotiations to steer emerging economies toward compatible carbon-market and trade frameworks, aiming to protect their industrial competitiveness. This tug-of-war is creating clearer long-term signals for investors: countries securing climate-finance flows or aligning with major carbon-markets are likely to attract more green-infrastructure and transition investment, while firms positioned in clean-tech and low-carbon supply chains may benefit from the emerging geopolitical realignment.



Week Ahead.


United States: The focus in the US this week is the release of the Federal Reserve’s minutes from its October meeting on Wednesday, 19 November, which will provide additional detail on policymakers’ recent discussions over economic conditions and the post-summer adjustment in monetary policy. Later in the week, Thursday, 20 November brings a run of core activity indicators, including initial jobless claims, the Philadelphia Fed manufacturing index, and existing home-sales data, offering a timely read on labour-market firmness and housing-market trends. The week concludes on Friday, 21 November with the publication of the flash PMIs for November, giving an early view of business conditions heading into the final month of the year.


Eurozone: In the Eurozone, attention turns first to the final inflation reading for October, due on Wednesday, 19 November, giving a fuller view of pricing trends across member states. The key release comes on Friday, 21 November, when the region publishes its flash PMIs, alongside country-level figures for Germany and France. These surveys will help gauge the direction of economic activity across the bloc, capturing shifts in demand, output and business confidence as policymakers evaluate conditions heading into 2026.


United Kingdom: A busy week for UK data begins with the release of October’s inflation figures on Wednesday, 19 November, providing an updated assessment of price pressures across goods and services. The latter part of the week centres on Friday’s flash PMIs, which will offer an initial indication of business activity in manufacturing and services for November. These releases together will help build a clearer picture of domestic momentum as year-end approaches, following mixed signals in recent labour-market and output data.




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