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Clever.

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Clever.

Weekly Market Review - 22-09-2025

  • Writer: Eloise Bell
    Eloise Bell
  • Sep 22
  • 3 min read

Updated: Sep 30

As markets enter the final stretch of Q3, investor attention has turned sharply to central bank decisions, inflation data, and the evolving economic outlook across major regions. This week saw broad equity gains, cautious optimism around rate cuts, and fresh warnings from retailers about rising costs ahead of the UK’s autumn Budget. Meanwhile, regulatory updates in Europe and geopolitical risks continue to shape sentiment, with sustainability reporting and cyber threats both in focus. Here's a breakdown of the key developments.



Market Recap.


Equity markets diverged over the week, with U.S. benchmarks advancing while UK equities eased. The FTSE 100 ETF slipped 0.73%, reversing recent gains in consumer and energy names. By contrast, U.S. indices posted solid growth. The Nasdaq 100 ETF climbed 1.84% on strength in technology shares, while the S&P 500 ETF added 1.11%. The Dow Jones Industrial Average ETF rose 1.42%, reflecting broad momentum as investors welcomed the Federal Reserve’s latest policy stance.

 


News.


On 18 September, the Bank of England’s Monetary Policy Committee voted 7–2 to keep Bank Rate at 4.00%, delaying further cuts. Persistent inflation at 3.8% y/y in August was central to the decision. The BoE also slowed the pace of quantitative tightening, reducing gilt run-off from £100bn to £70bn over the coming year, with fewer long-dated sales. Governor Andrew Bailey warned that inflation risks remain, particularly through wage growth, and stressed that any future cuts must be “gradual and careful.”



Inflation. 


Final Eurostat figures confirmed Eurozone inflation held at 2.0% y/y in August, unchanged from July. Services inflation eased to 3.1%, food, alcohol & tobacco rose 3.2%, and non-energy industrial goods remained at 0.8%, while energy costs fell around 2%. Core inflation, excluding food and energy, was steady at 2.3%. The data show that while headline inflation is now at the ECB’s target, underlying pressures persist, reinforcing expectations that policymakers will remain cautious before considering rate cuts.



Central Banks.


The European Central Bank signalled it may deploy a “contingency cut” to offset recent euro strength, which risks undermining growth and driving inflation below target. Outgoing Governing Council member Mario Centeno cautioned: “If the euro continues to strengthen, it would add to the downside risks to inflation and GDP.” With policy rates already at 2.00% and forecasts showing inflation in 2026–27 dipping slightly under the ECB’s 2% goal, officials emphasised that monetary policy remains data-dependent.



Commodities.


Gold surged to a new record above $3,700/oz last week as investors sought safety and responded to expectations of easier U.S. monetary policy. Prices remain near those highs, underscoring strong demand for precious metals. Oil prices also firmed, with Brent crude trading near $67/barrel and WTI at $63/barrel, supported by geopolitical tensions in both the Middle East and Europe. The combination of rising safe-haven demand and renewed energy market strain kept commodities in focus for global markets.



ESG.


Climate Week NYC 2025 opened alongside the UN General Assembly with record participation of over 1,000 events. The summit aims to accelerate non-state climate action — from corporate emissions cuts and clean-energy deployment to carbon-removal projects and financing scale-ups. Organisers hope to use the global spotlight to pressure governments into updating targets, aligning policies, and narrowing the gap between headline net-zero pledges and practical implementation. The sheer scale of participation highlights the private sector’s role in advancing climate goals.



Geopolitics.


During President Trump’s state visit to the UK, officials announced a £150bn U.S. investment package, expected to generate around 7,600 jobs. The initiative is part of a new Technology Prosperity Deal, focused on sectors such as clean energy, advanced manufacturing and nuclear cooperation. However, disappointment emerged in the steel sector after planned U.S. tariff reductions were put on hold.



Week Ahead.


United States: On Thursday 25 September, the Bureau of Economic Analysis releases the final Q2 GDP estimate, alongside updated industry and corporate profit data. The week ends with the August Personal Income and Outlays report on Friday 26 September, which includes the Fed’s preferred inflation measure, core PCE. Both releases will be key in shaping expectations for further policy easing.


United Kingdom: On Tuesday 23 September, S&P Global publishes the flash PMIs for September, covering manufacturing and services. These surveys will give early insight into the UK’s business climate and whether momentum is holding as the Bank of England keeps policy steady.


Eurozone: On Wednesday 24 September, the German Ifo Business Climate survey will provide a fresh snapshot of current conditions and expectations for Europe’s largest economy. This release is closely watched as a barometer of wider Eurozone sentiment.




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