UK and European equity markets held steady with a modest upward bias as investors digested somewhat mixed signals. In the UK, the FTSE 100 again approached record highs, supported by robust earnings from major companies but tempered by slower domestic growth and elevated borrowing costs. The euro-zone’s business activity showed signs of stabilising, though weakness in France and Germany remains a drag on the broader European narrative. On the interest-rate front, the Bank of England continues to wrestle with sticky inflation and a tight labour market, which has dampened hopes of an early easing cycle.

US equities were buoyed as the September headline inflation print came in at 3% year-on-year, slightly below some market expectations, which revived hopes the Federal Reserve may begin cutting rates sooner than feared. The S&P 500 and Nasdaq Composite reached new highs, reflecting strong earnings and a more favourable interest-rate backdrop.

In the Asia-Pacific region, equities took a more muted turn. Major indices in Japan and Australia pulled back slightly on concerns over global growth and trade tensions, while Chinese markets remained volatile amid uncertainty over policy support. Regional bond yields edged lower, reflecting expectations of looser global monetary conditions ahead. Investors remain focused on the outlook for China’s economy and how it will influence demand across the region.

Oil prices remained relatively flat today as supply and demand signals were balanced. On the supply side, OPEC+ has maintained output discipline, while demand concerns persist amid weaker growth in some large economies. Market participants are watching closely for shifts in China’s industrial activity and any changes to Russian export flows, which could quickly tilt the balance.

Gold prices held steady, supported by the softening inflation backdrop and potential for rate cuts in the US, which makes non-yielding assets more attractive. At the same time, the dollar’s marginal strength and absence of a clear risk-off event kept upside for the metal contained.

UK corporate news was supportive of the equity market. NatWest Group reported a robust interim profit uplift, driven by higher net interest income and reduced impairments, which helped lift confidence in the UK banking sector and contributed to the FTSE index’s strength.

The retail group Kingfisher plc saw its shares rise following better-than-expected trading in the UK and France, which was interpreted by investors as a positive signal for consumer resilience despite broader economic headwinds.