12 October 2026
Equities vs. Bonds: Bond is back… with a licence to yield – Download Chart of the week
The Market Place – Download Market Data
- Resilient activity and elevated inflation kept policy restrictive, while strong large-cap earnings expectations continued to cushion equities from high bond yields.
- Rising gilt yields sharpened the trade-off between inflation control, fiscal credibility and domestic growth, while internationally exposed equities offered some resilience.
- French fiscal risk and higher energy costs kept regional markets fragile, leaving the ECB to balance persistent inflation against tighter financial conditions.
- Divergent policy, political and technology developments produced mixed regional outcomes, with energy costs and global yields remaining important common pressures.
