Markets were mixed this week as AI jitters clashed with strong results and softer inflation signals
This week @ 1612 – Friday 13th Feb – London.
Markets:
- FTSE 100 increased 0.63% this week to 10,435, driven by rotation into defensive stocks and a recovery in previously pressured sectors like banks and miners.
- S&P 500 fell 1.36% this week to 6,836, driven by a combination of cooling, yet resilient, inflation data that tempered rate cut expectations as well as ongoing negativity surrounding AI’s effect on software companies.
- Nasdaq Composite fell 2.05% this week to 22,552, driven by concerns surrounding AI affecting semiconductor and software holdings.
- Euro Stoxx 50 up 0.28% this week to 5,145, driven by strong luxury sector and industrial earnings.
Bonds:
- UK 10-year gilt yields fell 8 bps this week to 4.41%, reflecting expectations of a potential BoE rate cut following softer domestic data.
- US 10-year Treasury yields fell 12 bps this week to 4.06%, reflecting a flight to safety and lower-than-expected CPI readings.
Commodities:
- Brent crude fell 1.26% this week to $67.59, supported by rising US inventories despite ongoing Middle East tensions.
- Gold rose 0.47% this week to $5,003, as a weaker US Dollar and lower yields increased the appeal of non-yielding assets.
- Copper fell 1.83% this week to $5.77, driven by concerns over slowing manufacturing demand in Asia.
FX:
- GBP/USD rose 0.1% this week to 1.36, as the Greenback softened following US inflation reports.
- GBP/EUR rose 0.5% this week to 1.15, as the Euro struggled against a resilient Pound.
Macro:
- US: January CPI rose 0.2% month-on-month, meeting expectations and reinforcing the disinflation trend.
- UK: GDP data showed 0.1% growth for the final quarter of 2025, narrowly avoiding stagnation.
- Geopolitics: Continued focus on trade negotiations between the EU and US regarding automotive tariffs.
Companies:
- Astrazeneca: Reported strong quarterly revenue growth driven by its oncology portfolio.
- Schneider Electric: Announced an expansion of its data centre infrastructure partnership.
What we will be keeping an eye on next week…
w/c 16th February
- UK CPI Inflation (Jan) – 18th Feb
- US Jobless Claims – 19th Feb
Markets move constantly and the numbers in this update will change. This is a snapshot only, pulled together from a range of sources, and is meant as a quick guide rather than a precise record. It’s not investment advice and shouldn’t be used to make trading or investment decisions. If you need more accurate or specific data over a defined period, please get in touch with a member of the team who will be happy to help.
Important Information
This article is for information only and does not constitute advice or recommendation and you should not make any investment decisions based on it. The views and opinions of this article are those of Casterbridge at the time of writing and may change without notice. Any opinions should not be viewed as indicating any guarantee of return from investments managed by Casterbridge nor as advice of any nature. It is important to remember that past performance and the value of an investment, and any income from it, may go down as well as up and the investor may not get back the original amount invested.