Equities edge higher this week as inflation cools and central bank easing hopes build.
@ 14:30pm – Friday 24th October 2025 – London.
Markets:
- FTSE 100 rose 1.88% this week to 9,580.10, driven by a rally in equities as gilt yields fell and sterling softened after cooler-than-expected UK inflation and stronger retail data.
- S&P 500 rose 0.72% this week to 6,783.31, driven by a softer US inflation print that lifted hopes of earlier Fed easing.
- Nasdaq Composite rose 0.71% this week to 23,154.75, led by gains in large-cap technology and continued momentum into record territory.
- Euro Stoxx 50 fell 0.31% this week to 5,663.05, weighed by mixed eurozone activity data and sector rotation away from cyclicals.
Bonds:
- UK 10-year gilt yields fell 8.3 basis points this week to about 4.42%, reflecting softer UK inflation and reduced near-term rate risk.
- US 10-year Treasury yields were little changed, up just 1 basis point to about 4.01%, as markets digested the US CPI release and priced conditional Fed easing.
Commodities:
- Brent crude rose 8.5% this week to about $66.20 a barrel, supported by supply worries and shifting OPEC+ dynamics.
- Gold fell sharply, down around 4.8% on the week to $4,047/oz after profit taking once CPI data reduced safe-haven demand.
- Copper fell 0.3% to roughly $5.10/lb amid worries over demand.
FX:
- GBP/USD fell about 0.5% this week to 1.334, as softer UK data and lower gilt yields weighed on sterling.
- EUR/GBP rose about 0.35% to 0.8715, reflecting relative eurozone resilience.
Macro:
- Key data: US inflation prints came in cooler than feared, reducing near-term Fed hawkishness and supporting equities. UK retail sales surprised to the upside, helping UK risk assets but leaving some BoE policy uncertainty.
- Central banks: markets are increasingly pricing Fed easing next year; Bank of England guidance remains cautious.
- Geopolitics: renewed trade tensions and diplomatic headlines added episodic risk to sentiment.
Companies:
- ASML Holding: Reported Q3 net sales of €7.5bn and net income of €2.1bn. Management reaffirmed full-year guidance despite expected 2026 slowdown in China.
- Coca-Cola Co: Reported Q3 EPS of $0.82, up 6% YoY. Organic revenue grew 6%, but volume growth was soft in key markets.
What to keep an eye on next week:
w/c 27th October
- Watch the US Federal Open Market Committee meeting (28–29 October) and the US GDP and key US economic releases. Eurozone and German data will be relevant for European risk. Earnings and central bank commentary could drive near-term moves.
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.