Market News
Brent crude is trading down towards $90 a barrel, extending losses from yesterday’s session and hitting its lowest level since late August amid diplomatic efforts to end the Middle East conflict. President Trump expressed optimism about a possible resolution, stating that the war is “militarily effectively over”. Meanwhile, Congressional Democrats are considering using the 11 December government shutdown deadline to pressure Trump into ending the war. However, tensions remain elevated as US forces reportedly launched another strike on Iran’s Qeshm Island, while US Secretary of State Marco Rubio tempered expectations for progress in negotiations.
Equity markets rallied in the US last night – S&P 500 (+2.4%); Nasdaq (+2.8%) and in Asia this morning – Nikkei 225 (+2.9%); Hang Seng (+0.4%); Shanghai Composite (+0.1%); Kospi (+4.4%). The gains were driven by a tech-led recovery, as well as the oil price decline.
The dollar is steady as investors await a key US inflation report that could shape expectations for Federal Reserve monetary policy. Headline CPI is expected to rise by 0.3% month-on-month, a drop from 0.6% the previous month, with the Core reading at 0.2%. While this would be a moderation, it probably isn’t enough to remove the risk of a December rate hike. Critically, the 12-month year-on-year figure will not be published due to the 2025 government shutdown data gap, which limits the interpretive value of the release and may amplify market volatility around the print. For now, the yield on the 10-year US Treasury is 4.87%, while gold is trading at $4,115 an ounce, after giving up some of yesterday’s gains. Singapore has launched a new gold vaulting service for central banks.
The FTSE 100 is currently 0.7% higher at 10,854. Following the release of positive first-half results, Vodafone has upgraded its full-year guidance for both profit and cash flow, although the dividend was raised by less than expected. In response, the shares are little changed in early trading.
UK like-for-like retail sales for October came in at 1.1%, pretty much in line with expectations and the previous month. Separately, Barclays reported consumer card spending grew 2.3% in October – the highest growth since July 2025 – even as all five of Barclays’ consumer confidence measures fell. Sterling trades at $1.3450 and €1.1965, while the 10-year Gilt yields 5.10%.
Rare-earth elements are trading outside China at large multiples of their domestic price as China’s export curbs limit supply ahead of a possible Trump-Xi summit. Europe is accelerating efforts to build domestic supply chains.
Source: Bloomberg
