Weekly investment insights

Weekly investment update

What's been happening in markets?

  • Equities: Equity markets were mixed last week. The FTSE 100 added +3.2%, with Emerging Markets dropping -3.2% The US fell -3.2% whilst Europe gained +1.3%. The UK benefited from the rotation into defensive equities, whilst the switch to value names supported European index. US losses were attributable to weak AI-linked performance, with EM losses being fuelled by weak Asian chip and conductor performance. 
  • Bonds: Bonds rallied globally, with UK gilts adding +0.9%; 10yr UK yield currently 5.37%. US treasuries yield added +0.9%, with 10yr US yield currently 5.07%. Investment Grade bonds added +0.7% whilst High Yield fell -1.0%.
  • Diversifiers: Gold fell -0.5% ($4,191), Brent oil gained +2.9% ($108) and Bitcoin fell -1.1% to $82,837.

Key market drivers

  • UK GDP: Growth is surprisingly resilient with 0.1% growth in August; driven by professional services which is up 6.6% YoY; International Monetary Fund has upgraded UK growth to 1.3% for 2026.
  • US Inflation: US inflation jumped to 3.7% for September; rising fuel prices contributed and raised the print from 3.4% in August; core inflation (exc. food and energy) was 2.6%, up from 2.4% in August.
  • Chinese GDP: Chinese economy grows at 4.5% in Q3, with exports boosted by AI demand. China is on track to hit the annual growth target of 4.5-5%, despite retail and investment spend remaining subdued.

Chart of the week

Technology shares have come under pressure in recent weeks as investors continue to question the timescale of the major technology companies monetising their enormous investments in data centres. However, this has not yet fully impacted investor sentiment, with fund managers remaining ‘risk-on’ (overweight equities, low cash levels).

This can be seen in the chart above, which shows the performance of the Magnificent 7 – that is, the major US tech stocks – and the remaining 493 stocks in the S&P 500 Index. We refer to this sub-index as the S&P 493. The performance is shown here in Sterling, with dividends reinvested, from the start of the year.

The Magnificent 7 are trading close to the 100 mark. Viewed since the start of the year, they have been extremely volatile but the combined return has been close to 0%. By contrast, the remaining 493 stocks have, on the whole, gained around 15% over the same period. And this shows precisely that the market is currently broadly supported: many investors feared that a price correction in the technology sector could become a problem for the broader market. However, that was not the case.

Investors have therefore not turned their backs on the stock market, but have instead shifted their investments into other, more traditional sectors. Incidentally, the UK is (to a certain extent) also benefiting from this: the FTSE 100 has delivered a performance of 8% since the start of the year thanks to energy, defence, financials and industrials.

Upcoming events

Monday 19th October
  • US: N/A
Tuesday:
  • UK: August unemployment rate (forecast 4.9%)
Wednesday:
  • UK: September inflation (forecast: 3.4%)
  • US: Crude oil inventories
Thursday:
  • UK: Bank of England Governor Andrew Bailey speaks
  • US: Initial jobless claims (forecast 200k)
Friday:
  • UK: Consumer confidence

This content is for general information purposes only and does not constitute financial advice or a personal recommendation. Past performance is not a reliable indicator of future results. Investments can rise or fall in value, and you may receive less than you originally invested.

How we can support you

Offer

Portfolio
check

How well is your portfolio compared to the market and other investors? Our expert analysis shows you how to get more out of your money.

Resources

Quarterly Investment Review

Our investment team breaks down the latest market developments and asset-class insights.

 

Appointment

Book a free meeting

Organise a complimentary introductory meeting with a Lumin adviser to explore the different options available.

Resources

Newsletter

Get regular investment updates straight to your mailbox every month. Subscribe now free of charge.

Resources

Factsheets

We produce a range of factsheets and mini-guides to help our clients and consumers stay up to date and informed about key financial planning topics.

Resources

Podcast

Join Financial Planning Manager James Corcoran and Financial Consultant Jack Dudley as they discuss the financial topics you should be aware of.

Resources

Studies

Our studies provide thoughtful analysis, market research, and evidence-based insights to guide our clients through an ever-changing financial landscape.

Get the latest financial planning ideas delivered to your doorstep

This free publication is distributed to thousands of households three times a year. Serving as your go-to resource, it offers clear, expert guidance on the financial planning questions that matter most to you.

Discover lumin news

Read our publication covering essential financial planning ideas