3 November 2025
Could the profile of capital allocation in the US change going forward – Download Chart of the week
The Market Place – Download Market Data
- Fed easing plus thawing US-China trade tensions fuelled a risk-on rally and pushed equities to new highs, but the rate cut also underscored renewed concerns about US growth and the labour market.
- Slowing inflation but weak growth keeps the BoE in a finely-balanced stance – markets expect eventual cuts, but fiscal uncertainty (budget) and mixed corporate news keep volatility elevated.
- Eurozone disinflation to ~2% gave the ECB room to pause – that reduced immediate policy risk for markets, but political fracture over Ukraine financing and sanctions keeps geopolitical risk elevated.
- Trade optimism (US-China deal, Japan policy shift) is balanced by high geopolitical uncertainty from Gaza tensions and Middle East oil risks.
