In the UK, October brought noteworthy news with lower-than-anticipated inflation data. Headline Consumer Price Index (CPI) dropped to 4.6%, down from the previous month’s 6.7%, surpassing expectations of 4.8%.

Concurrently, core inflation decreased from 6.1% to 5.7%, slightly below anticipated levels. This was a similar trend to grocery inflation, as Kantar reported that it had fallen from 9.7% to 9.1% in November.

Positive market sentiment was further bolstered by the Purchasing Managers Index (PMI) data, showing expansionary trends with a composite PMI of 50.7 in November, the first time above 50 since July.

The housing market showed a steady increase, with house prices reportedly increasing by 0.5% in November, which is down from a 1.2% increase in October. However, taking into account the change on an annual basis, house prices had fallen by 1.0%.

To wrap up the UK market commentary, the Bank of England’s Monetary Policy Committee voted to maintain interest rates at 5.25%, which was expected, however there were votes to increase it further to 5.5%.

The United States

The US experienced a parallel scenario of lower-than-expected inflation. Headline inflation dropped to 3.2% in October, down from September’s 3.7% and below the anticipated 3.3%.

Core inflation also decreased to 4% from the prior month’s 4.1%, falling short of expectations. This provided relief to both markets and households. The economic landscape featured the creation of 336,000 new jobs in September, and 199,000 jobs in November, which was more than anticipated.

The 2nd estimate for Q3 GDP indicated annualized growth of 5.2%, surpassing the 1st reading (4.9%) and expectations (5%). Despite this positive outlook, the Federal Open Markets Committee chose to keep the federal reserve rate unchanged.


In the euro area, November saw lower-than-expected inflation figures as well. Headline inflation declined to 2.4%, which was more than anticipated, from 2.9% in October, while core inflation dropped to 3.6%, from 4.2% in October.

There was a cooling in services inflation and non-energy industrial goods inflation. Composite PMI still indicated economic activity contraction, but it showed improvement, rising to 47.1 in November from 46.5 in October.

Its important to note that the automotive industry has not yet the 10% tariff on the sale of electric vehicles between Britain and the EU. The European Commission proposed a 3 year delay to the tariff from January 2024 to December 2026.

Despite the above, optimism prevailed among households due to a near all-time low unemployment at 6.5% in October and the reappearance of real wage growth amid falling inflation.


Japan’s economic data presented a mixed picture. The preliminary Q3 GDP growth reading showed a 0.5% contraction. Composite PMI dropped to 50 in November, its lowest level since December 2022.

On a positive note, inflation picked up again to 3.3% in October, and unemployment unexpectedly fell to 2.5% in the same month.

Emerging Markets

In Emerging Markets, uncertainty surrounding China’s economic recovery persisted. Despite an estimated 1.3% quarter-on-quarter growth in Q3, low inflation (-0.2% in October) and a fall in composite PMI to 50.0 in October continued to weigh on investor confidence. Property investment, a significant growth driver, also declined nearly 10% year-on-year in October.