Questa September Market Commentary
August and into September is usually a quiet month in the markets. Not this year. From interest rate moves in the UK to political drama in the US, global markets had more than their share of surprises.
Here’s a quick look at what happened, what it means for savers and investors, and what to keep an eye on as we move into September – with the Autumn Budget on 26 November now firmly in view.
UK: Record Highs, Rising Yields, and Budget Jitters
- The FTSE 100 touched record highs in August before easing back, showing how quickly sentiment can shift.
- 30-year gilt yields climbed to levels last seen in 1998, reflecting concerns about inflation and government borrowing. That means higher costs for the Treasury – and more Budget speculation.
- The Bank of England cut the base rate to 4%, its fifth cut since the election. With inflation still above target, further cuts aren’t guaranteed.
- Expect steady chatter about possible changes to inheritance tax, ISAs, pensions and capital gains. As always: speculation is noise – confirmed policy is what matters.
US: Politics, Tech and the Fed
- Political tension rose as President Trump clashed with the Federal Reserve, sparking questions about future rate policy.
- Despite the drama, US markets rose across the board, supported by hopes of a rate cut later this month.
- Tech shares wobbled briefly after Nvidia and Dell posted softer results, and uncertainty remains over AI chip exports to China.
Europe: Patchy Growth
- France’s economy shrank again, while Germany struggled for momentum.
- Spain and Italy performed better, but overall growth was weak.
- Inflation ticked up to 2.1%, with the ECB expected to hold rates steady.
Far East: China and Japan in Focus
- China’s economy sent mixed signals: official data showed manufacturing still in contraction, but private surveys pointed to modest growth. Services activity was stronger, and the yuan firmed slightly.
- Japan’s inflation stayed high, while manufacturing contracted. Still, the Nikkei 225 ended August higher, riding a broader Asian rally.
Emerging Markets: Volatile but Varied
- Indonesia saw protests and currency intervention, though stability is slowly returning.
- India faced pressure from proposed US tariffs and a weaker rupee.
- South Africa showed resilience with PMI above 50 and a firmer rand, despite weaker exports.
Global Takeaway
Despite political spats, inflation worries and market jitters, most global indices posted gains in August. For UK investors, the big story ahead is the Autumn Budget. Expect noise – but remember, long-term goals matter more than short-term swings.
And Finally… Sweden Goes Cashless
In Sweden, just 1% of transactions are now made with cash. Even buskers and market stalls use digital payments. The UK isn’t there yet, but it shows how quickly financial habits can change.
What Should You Do?
- Ignore Budget speculation until 26 November.
- Check your portfolio for balance across sectors and geographies.
- Speak to a planner if you’re concerned about tax or rate changes.
- Stick to your plan unless your goals have genuinely changed.
Patience and perspective remain the investor’s best tools.
✅ Next step: If you’d like a review of your portfolio or a conversation about how global changes could affect your plan, get in touch.
Sources: BBC, FT, Reuters, CNBC, PMI Global (August 2025).
