Omnis Weekly Market Update – 10 November 2025

Global equities pullback amid widespread selling across mega-cap Tech and AI-exposed companies. Chinese equities proved resilient, while the Bank of England held interest rates steady, as widely expected.

 

Last week’s performance – major stock markets 

 

S&P 500	-1.63%
Nikkei 225	-4.07%
CSI 300	0.82%
Euro Stoxx 50	-1.69%
FTSE 100	-0.36%

 

Commentary

 

US: AI stocks pullback amid concerns over stretched valuations and spending
U.S. stocks ended a three-week winning streak as a sell-off in technology shares dragged major indices lower, driven by concerns over lofty valuations and scrutiny of AI-related spending. Growth stocks underperformed value shares by the widest margin since February. The ongoing federal government shutdown, which is the longest on record, further dampened sentiment as worries grew about its economic impact and delays in government data. Meanwhile, a report released by consulting firm Challenger, Gray & Christmas indicated October layoffs hit their highest level since 2003. Other economic data painted a mixed picture, with services activity returning to expansion, manufacturing contracting for the eighth month in a row, and consumer sentiment falling to its lowest level since 2022, predominantly driven by the government shutdown.

Japan: Stocks pullback sharply, driven by selling in AI and Semiconductor stocks
Japanese equities retreated from record highs, with the Nikkei 225 down 4.07%, as investors took profits in AI and chip-related stocks amid valuation concerns. Broader risk aversion supported the yen, which strengthened slightly against the U.S. dollar as officials reiterated close monitoring of currency movements. Risk aversion supported the yen, which strengthened slightly against the U.S. dollar as Finance Minister Satsuki Katayama reiterated that authorities are monitoring foreign exchange movements “with a high level of urgency.” Wage data showed real wages (or wages adjusted for inflation) fell for a ninth consecutive month, suggesting inflation is still eroding household purchasing power. Prime Minister Sanae Takaichi reaffirmed her commitment to boosting domestic demand, saying Japan has yet to achieve sustainable price and wage growth. Her government is expected to unveil a fiscal stimulus package later this month to support consumer spending and shore up confidence.

China: Stocks rally on easing trade tensions and improving investor sentiment
Chinese equities rose for the week, helped by easing trade tensions with the U.S. The positive momentum followed a meeting between U.S. and Chinese leaders at the APEC summit in South Korea, where both sides agreed to a one-year truce in their trade dispute. Although the meeting produced few concrete policy outcomes, markets took the handshake agreement as a sign that both nations are seeking stability as opposed to a continued escalation of tensions. Analysts noted that while competition between the two powers will remain a defining long-term theme, near-term de-escalation has buoyed sentiment and lifted risk appetite. The CSI 300 Index is now trading near a four-year high, highlighting renewed optimism toward Chinese equities.

Europe: Valuation concerns, weak economic data and softer sentiment sees European equities ease

European markets fell for the week, driven by weakness in AI-related stocks and persistent valuation concerns weighing on investor risk appetite. Both Sweden’s and Norway’s central banks kept interest rates unchanged, signalling that rates will likely stay higher for longer as inflation pressures remain stubborn. Eurozone retail sales contracted for a third straight month in September, highlighting subdued consumer spending. In Germany, industrial production rose just 1.3%, which was below expectations, while new orders increased slightly but remained weak overall. The German economy ministry described manufacturing activity as “still fragile,” highlighting ongoing headwinds from weak global demand and high energy costs.

 

UK: Interest rates held steady, but outlook for near-term cuts becomes clearer
UK equities eased slightly for the week, with the FTSE 100 retreating -0.36%. Monetary policy was the key focus for investors. The Bank of England held interest rates steady at 4%, as widely expected, although Governor Andrew Bailey hinted that a rate cut could be on the horizon as soon as December. Five members voted to hold the key interest rate, while four opted for a 0.25 percent cut. Governor Bailey commented that market expectations for a gradual decline in rates over the next three years was “a fair description” of his outlook. CNBC reported that economists are now pricing in a pre-Christmas rate cut. This saw the UK market hold up better than European peers.