6 October 2025
The UK’s stormy power market – Download Chart of the week
The Market Place – Download Market Data
- Even amid a government shutdown and political overhang, markets leaned into a “lower for longer” interest rate narrative, meaning that monetary expectations (rate cuts) dominated over immediate policy disruption risk.
- The intersection of weak business momentum and tight fiscal constraints shapes a delicate balancing act: the UK must navigate budget pressures without spooking bond markets or undermining investor confidence.
- European Central Bank extended its China swap line. Rising bond yields and trade tensions exposed eurozone strains.
- Markets showed cautious optimism as China’s stimulus and tentative Middle East peace signals eased global risk sentiment, though Japan’s political uncertainty and unresolved security issues kept investors defensive, favouring tech and safe-haven assets over broader risk exposure.
