???? UK Inflation Jumps Sharply to 2.3%

Hala,

??? A banana duct-taped to a wall is up for $1M at Sotheby’s—proof that the art world’s gone bananas!(1) The real prize? The buyer gets a certificate to recreate it forever. ????

???? The S&P 500 held steady at 5,917.11 (0.00%) on Wednesday as investors braced for Nvidia’s big earnings report. The Dow climbed 0.32% to 43,408.47, while the Nasdaq 100 dipped to 20,667.10 or by -0.08%4, reflecting mixed market sentiment. (2) ?????

???? Gulf markets were mostly quiet on Wednesday as geopolitical concerns kept investors cautious. However, Dubai broke the trend, climbing 0.6% to hit a 10-year high at 4,761, driven by finance and real estate. Meanwhile, Abu Dhabi slipped 0.2%, closing at 9,405.(3) ????

amana’s Take

• Safe-haven demand is back in style as gold hit a 1.5-week high of $2,660. Geopolitical jitters from the Russia-Ukraine conflict and a weaker US dollar fueled the rally, though Treasury yields—amped up by inflation buzz—kept the party from getting too wild. Fed officials are playing cryptic games with rate-cut hints, leaving gold bulls cautiously optimistic.
• Oil prices crept higher, with Brent topping $73 and WTI near $69, as markets kept one eye on escalating Russia-Ukraine tensions and the other on a surprisingly tame US crude inventory build. Still, worries over China's demand funk and next year’s potential supply glut have capped the excitement. The OPEC+ poker game looms large.
• From gold’s cautious rally to oil’s geopolitics-driven grind, it’s a market of contradictions. Inflation fears, central bank drama, and geopolitical risks have everyone bracing for impact—but not too hard. Investors, as always, await the next breadcrumb trail of economic data to guide their bets.

???? Inflation Fires Up the Kettle, Boiling BOE Rate-Cut Hopes

The U.K.'s inflation kettle is whistling louder than expected, climbing to 2.3% in October. (4) That’s a sharp rise from September’s 1.7% and above the Bank of England’s 2% target, pouring cold water on the idea of a December rate cut. While energy price caps and global trade frictions stoked the fire, the BOE may need to simmer its monetary easing plans. ????

????? Steaming Stats and Surprises:

• Core Inflation: Tick, tick—up to 3.3% from 3.2% in September.
• Services Sector: Price rises edged to 5%, the lowest in two years—but still piping hot.
• Gilt Yields: Borrowing costs rose slightly, with 10-year yields at 4.491%.
• Sterling: A tepid gain, trading 0.1% higher at $1.2692 as of 8:03 a.m. London time and rising 0.4% against the euro to 1.20 euros. ????

???? Cooling Rate Cut Expectations

The inflation surge leaves BOE Governor Andrew Bailey with little room to maneuver as rate-cut odds steeply decline. Markets are now pricing in a meager 14% chance of a December trim. With energy costs brewing higher and the Autumn budget pouring in ￡40 billion of tax hikes, the BOE might need to sip cautiously before its next move.

Closer to Home?

• ??? Dubai’s real estate market is crushing it, with transactions expected to jump 30% by year-end—151,000 deals already locked in!(5) Who needs crypto when you’ve got condos? ??
• ?? Kuwait’s inflation hit 2.44% in October, a slow but steady rise—looks like prices are doing their version of a treadmill workout.(6) ??
• ??? Meanwhile, Kuwait’s real estate deals slid 25.3% last week, with fewer buyers and fewer bucks(7)—guess everyone’s saving up for Black Friday instead. ???

What Else Is Trending

• ?? Trade tensions are rattling the euro zone, with the ECB warning they could shake financial stability harder than high inflation—weak growth is stealing the spotlight.(8) ???
• ?? Euro zone wage growth sped up to 5.42% in Q3, giving rate-cut plans a reality check—workers are cashing in on inflation like it’s a Black Friday sale.(9) ??
• ?? Japan’s exports rebounded 3.1% in October, beating expectations and recovering from a 43-month low—turns out, the comeback kid isn’t just a myth. (10) ??

??Quote of the Day

“Short-term inflationary pulses may return… but whether this is just a blip remains to be seen.” – Lindsay James, investment strategist at Quilter Investors

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amana.app

Sources::(1) AP News, (2) (4) (8) (10) CNBC, (3) (9) Reuters, (5) Economy Middle East, (6) (7) Zawya