November 2026: Monthly market update
The Penny Group Harridges’s monthly market commentary from Omnis Investments, who manage our Omnis model portfolios, as well as selecting our third party fund managers. With more than £10 billion of assets under management, Omnis is one of the UK’s largest asset managers.
Global markets navigate an uncertain outlook
Corporate earnings, AI investment and economic growth remained in focus alongside inflation, interest rates and geopolitical uncertainty.
Technology shares face pressure
Global equities experienced mixed performance in October as company earnings and continued investment in artificial intelligence helped offset geopolitical tensions and concerns over borrowing costs. The FTSE 100 reached a seven week high mid-month, while European stocks recorded their strongest monthly gains since June.
US stocks were more mixed as investors rotated away from somenof the biggest technology companies. Bond yields also climbed amid concerns over interest rates and increased borrowing to fund AI investment. The US Federal Reserve (Fed) kept interest rates unchanged at 3.75% to 4% in October.
US inflation rose to 3.7% in September, up from 3.4% in August. The jobs market also cooled, with employers adding just 29,000 jobs, down from 133,000 the previous month. Unemployment edged up from 4.1% to 4.2%. US consumer confidence rebounded in October as households became more optimistic about the jobs market.
UK Budget and outlook
Chancellor John Healey delivered his first Budget, announcing a £100 energy payment for up to 20 million households in England in council tax bands A to D. To help fund the measures, he temporarily raised the tax surcharge on banks to 6% for 15 months and increased tax rates on property and savings income by two percentage points from April 2027.
Britain’s economy grew by 0.1% in August, defying forecasts for a contraction, while annual growth reached 2.1%, its strongest since late.
Manufacturing expanded by 1.2%, while computer programming was the biggest contributor over the three months to August, suggesting AI investment is supporting growth. The UK was also the fastest-growing G7 economy in the first half of 2026.
UK inflation rose to 3.5% in September, from 3.1%, increasing the likelihood of a Bank of England rate rise in November. Meanwhile, unemployment fell to 4.7% in the three months to August, from 4.9%, while annual pay growth edged up to 3.7%.
Chinese trade remains buoyant
China’s economy grew by 4.5% in the third quarter, up from 4.3% in the previous three months and ahead of expectations. Exports surged 36.3% year on year in September, driven by strong global demand for technology and pushing the monthly trade surplus to a record high. Beijing is increasing fiscal support to meet its growth target, although weak domestic spending and investment continue to weigh on the economy.
The European Central Bank (ECB) held its deposit rate at 2.5%, despite inflation reaching a three-year high of 3.8% in September. Eurozone business activity expanded at its fastest pace in nearly three and-a half years, supported by stronger services activity. However, political and economic uncertainty in France weighed on private-sector growth. Policymakers are expected to raise rates again in December, when updated forecasts will provide more clarity on inflation.
Principles of Investing
Meet the team who actively manage your investments.
Whilst reading the latest market update we continue to encourage all clients to follow the basic principles of investing, which include:
- Focusing on your longer term investment objectives. Don’t make important investment decisions based on short term market commentary or speculation.
- Stay invested for the longer term; normally at least five years.
- Remain diversified across different sectors, asset classes and geographies to reduce risk and enhance returns.
- Understand your overall attitude to investment risk and how this works. Regularly review your attitude to risk with your adviser.
Get in touch
Email info@tpgh.co.uk or call 01488 649141 if you have any questions or should you wish to speak to one of our advisers.
Approved by Omnis Investments on 1 November 2026