UK and European equity markets edged higher on mild optimism around improving macro conditions and hopes of monetary policy clarity. The UK quoted benchmark gains reflect some relief over softer-than-expected inflation prints in recent data, reducing immediate pressure on the Bank of England to hike further. Nevertheless, lingering concerns remain over sluggish growth, weak domestic demand and the sterling-sensitive export sector.

US markets rallied, driven by hopes of progress on resolving the federal government shutdown and a rotational move into large-cap tech firms showing strong momentum. The S&P 500 and Nasdaq Composite both gained, supported by better-than-expected earnings updates and a shift in expectations toward a more accommodative stance from the Federal Reserve. That said, concerns over stretched valuations in technology remain, and some caution is creeping back in as participants question the sustainability of current multiples.

In the Asia-Pacific region, stock markets generally traded higher, with indices such as Japan’s Nikkei 225 and South Korea’s KOSPI registering modest gains. The upside reflected spill-over from the US rally and a mild easing of trade-tension jitters, though Chinese markets remained relatively flat amid weak domestic momentum. Asia continues to weigh external demand concerns, as export-oriented economies face headwinds from a cooling global cycle.

Oil prices moved higher on signs of improving demand prospects combined with production discipline among major exporters. While global growth concerns remain in the background, the market’s focus is shifting toward supply-side constraints and inventory data that suggests a modest tightening. Geopolitical flashpoints continue to provide upside risk, and participants are increasingly watching OPEC+ decisions along with seasonal demand trends heading into year-end.

Gold advanced, benefiting from the combination of softer real yields and renewed safe-haven interest amid heightened policy uncertainty. With central banks signalling potential rate stability or cuts and inflation expectations remaining elevated, bullion is gaining traction as a hedge and liquidity alternative. The metal’s upward momentum reflects both technical flows and diverging narratives around real interest rates and currency movements.

In the UK market, attention turned to the retail sector after a prominent high-street chain unexpectedly revised its profit forecast downward, citing weaker consumer spending and higher wage costs. The stock fell sharply, dragging sector peers and raising concern over the resilience of UK domestic demand.

Marks & Spencer has announced the appointment of a senior executive from the aviation sector to its board as a non-executive director. The move reflects the retailer’s effort to bolster its governance and bring fresh strategic perspective as it continues to navigate a challenging UK consumer environment.