Written by Chris Ayton
The MSCI All Country World Index of global equities ended the week up +2.5% and is now up +13.5% this year. In global fixed income markets, the Bloomberg Global Aggregate Index was up +0.1% over the week in GBP Hedged terms and is now up +5.0% in 2025 so far.
The UK equity market enjoyed a strong week, rising +3.2% and is now up a very healthy +20.3% year-to-date. UK economic data releases over the week were generally positive, notably September’s annual inflation reading that came in at 3.8% which was below most expectations and, in some minds, increased the chances that the Bank of England could cut interest rates again before year-end. UK retail sales, a measure of consumer spending, also rose unexpectedly driven by demand for computers and telecommunications and online jewellers reporting strong demand for gold.
Japanese equities also enjoyed a boost from Sanae Takaichi being confirmed as Japan’s first female Prime Minister. It is generally regarded that Takaichi, who wants to be Japan’s “Iron Lady”, will be positive for the Japanese equity market and will be pushing for some additional stimulus to boost defence spending and also help support households feeling the impact of inflation. MSCI Japan was up +2.2% over the week taking the index to +15.4% for the year so far. Commentators are already collectively calling this the “Takaichi-trade” although, even with the new coalition with the Japan Innovation Party in place, it remains to be seen how much of the new spending plans and potential tax cuts she will manage to get through parliament.
After a stellar run, the shine came off gold last week, breaking a nine-week winning streak as trade tensions between the U.S. and China seemingly cooled, easing safe-haven demand. However, the oil price jumped as the US announced sanctions on Russia’s two largest oil companies, Lukoil and Rosneft, which will also likely result in other large importers like China and India curbing their purchases of Russian oil, switching their demand elsewhere. Such politically driven volatility underlines how hard it is to predict short-term commodity prices and this is why in the lower risk YOU funds and portfolios, instead of betting on single commodities, we maintain a broadly diversified exposure to commodities. The wider Bloomberg Commodity Index, which allocates across 24 different commodities, rose +1.7% over the week and is up +12.5% year-to-date, both in GBP hedged terms.
All performance figures are stated in Sterling terms, unless otherwise specified.
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All the data contained in the communication is believed to be reliable but may be inaccurate or incomplete. Unless otherwise specified all information is produced as of 27th October 2025.
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