"However, the big news came in the form of the UK inflation report, with September headline CPI held at 3.8% y/y (vs 4.0% expected), while core eased to 3.5%. Crucially, with the monthly CPI metric coming in at 0%, the pace of inflation for the past five-months is consistent with a return to 2%. Unsurprisingly, we are seeing increased calls for easing from the BoE, with markets now shifting forward the timing of the next rate cut from February to December. With much of the inflation problem attributed to government measures at their previous budget, we are thankfully seeing commentary around Reeves wanting to ensure household prices are reduced when she announces her November 26 Autumn statement."
"Gold traders are desperately trying to gauge whether yesterday's historical collapse was indicative of a new period of weakness or simply a case of blowing off steam after a dramatic surge into record highs. The 5-6% drop represented the sharpest one-day fall since 2013, but this came off the back of an incredible $400 rally in the space of a week."
London-listed stocks outperformed mainland Europe, with the FTSE 100 rising 0.7% while the DAX and CAC slipped. Banks led gains, notably Barclays after announcing quarterly share buybacks. September headline CPI held at 3.8% year-on-year (vs 4.0% expected) and core inflation eased to 3.5%, with monthly CPI at 0% and a five-month pace consistent with a return to 2%. Markets moved the expected Bank of England rate cut forward from February to December. Commentary indicated Reeves wants to reduce household prices ahead of the November 26 Autumn Statement. Crude oil rose on geopolitics and summit cancellation, inventories showed significant builds, and gold plunged 5-6% after a $400 rally.
Read at London Business News | Londonlovesbusiness.com
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