Wall Street rebounds as hot US inflation drives yields higher
This week @ 15:30 Friday 13th November in London.
Markets:
- FTSE 100 rose 1.77% this week to 10,863.09, as a midweek rebound in oil lifted energy heavyweights and Rolls-Royce rallied after announcing a £1.5bn interim share buyback.
- S&P 500 rose 2.77% this week to 7,581.44, heading for its best week since early August as a strong quarter from CoreWeave revived the AI trade and markets looked past turmoil at Nvidia and sharply higher yields.
- Nasdaq Composite rose 2.83% this week to 25,273.96, led by chip stocks, with rival chipmakers including AMD and Broadcom gaining after Nvidia’s CEO resigned.
- STOXX Europe 50 rose 2.62% this week to 5,510.91, as the broader STOXX 600 hit a record high on strong third-quarter earnings, lower energy costs and rotation away from AI-linked stocks.
Bonds:
- UK 10-year gilt yields rose 19.7bps this week to 5.34%, as the global bond sell-off spread to gilts and solid UK growth data supported expectations of a further Bank of England hike in December.
- U.S. 10-year Treasury yields rose 29.9bps this week to 5.16%, after hotter-than-expected October inflation and hawkish Fed commentary led markets to fully price a December rate hike.
Commodities:
- Brent crude fell 1.50% this week to $96.85/bbl, as President Trump said a deal with Iran was not needed to end the war and US crude inventories rose unexpectedly, partly offset by Houthi strikes on Saudi infrastructure and attacks on Gulf tankers.
- Gold fell 4.40% this week to $3,895.80/oz, touching its lowest level since October 2025 as the dollar climbed to a 19-month high on Fed hike expectations.
- Copper fell 1.25% this week to $6.1595/lb, hitting a four-month low as volatility in AI-related equities raised concerns over data centre demand and the stronger dollar weighed.
FX:
- GBP/USD fell 0.90% this week to 1.32325, heading for its largest weekly fall since September as rising US yields and hawkish Fed commentary lifted the dollar.
- GBP/EUR fell 0.14% this week to 1.19665, broadly unchanged as both currencies weakened against the dollar.
Macro
- US October CPI rose 0.4% m/m against a 0.3% forecast, with core up 0.3% for a third consecutive month. Fed Governor Waller said a 50bp December hike should be considered if core came in around 0.3% or higher, while Dallas Fed President Logan backed at least two further 25bp increases.
- UK Q3 GDP grew 0.7% q/q (Q2: 0.5%), in line with expectations and 1.9% higher year on year. Markets price around an 85% chance of a further BoE hike in December, following last week’s rise to 4%.
- The US-Israel war with Iran entered its ninth month. Iran denied that talks with Washington are under way, while President Trump indicated the US blockade will remain in place.
Company news:
- Nvidia: Jensen Huang resigned as CEO with immediate effect amid an independent board investigation into his personal relationships. CFO Colette Kress is interim CEO and Harvey C. Jones becomes the company’s first board chair.
- Rolls-Royce: Q3 trading update reaffirmed 2026 guidance of £4.7bn to £4.9bn underlying operating profit and announced a £1.5bn interim buyback, to be completed by 25 February 2027.
- Aviva: Q3 trading update showed wealth net flows up 31% to £10.9bn for the first nine months. Management expects 2026 earnings per share growth broadly in line with its 11% target.
- Allianz: Raised the upper end of its 2026 operating profit outlook to around €18.6bn following higher nine-month operating profit.
What we will be keeping an eye on next week…
w/c 16th November 2026
- Tuesday 17th November: UK labour market data and US retail sales.
- Tuesday 17th November: Nvidia Q3 results (after US close), its first report since the change of CEO.
- Wednesday 18th November: UK CPI (October), a key input ahead of the Bank of England’s 17 December decision.
- Wednesday 18th November: Minutes from the Fed’s October FOMC meeting.
Enjoy the weekend
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.
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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.