Global Markets​

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Global economy is navigating mixed signals, with Europe demonstrating clear disinflation, U.S. services inflation proving persistent, and Asia showing tentative signs of recovery. Energy developments remain pivotal, as a modest increase in OPEC output and rising U.S. inventories introduce additional complexity to the inflation trajectory. Within the Eurozone, headline CPI eased to 2.2% year-on-year and core inflation to 2.3%.

 

Global equities are charging ahead, led by US growth and AI-driven tech while cyclicals add momentum and value quietly builds for the next cycle. China’s tech rally is eclipsing the Nasdaq on AI and chip self-sufficiency, and Japan’s surge across autos, semis, and defense is reinforced by deeper US ties. Europe, meanwhile, lags as London takes hits from AstraZeneca’s NYSE move and Diversified Energy’s US shift, exposing its struggle to retain global listings.

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Government bond yields appear attractive relative to the past decade, and yield curves have been steepening. However, the magnitude of U.S. rate cuts currently priced into markets seems overly ambitious. Inflation risks remain tilted to the upside in both the U.S. and the U.K., although inflation-linked bonds are already reflecting these expectations.

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As of 30th September 2025:

UK 10 Year Gilt Yield 4.70%
US 10 Year Treasury Yield 4.15%
Germany 10 Year Bund Yield 2.71%

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UK Market

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​The recent steepening of the UK gilt curve, coupled with the Bank of England’s decision to maintain rates at 4% and moderate bond sales, has created opportunities to extend duration while navigating inflation and market stability. Gold acts as an anti-fragile complement to high-quality equities, rallying when real rates fall while equities offer growth exposure. Investors are increasingly turning to diversified strategies, with Morgan Stanley highlighting a 60/20/20 portfolio including 20% gold as a resilient inflation hedge.

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Ark Insights

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Gold continues to be a promising asset in the current market environment, serving not only as a hedge against inflation and market volatility but also as a portfolio stabiliser during periods of economic or geopolitical uncertainty. Its low correlation with equities and bonds enhances diversification, while real interest rates and central bank policies can influence its performance, making it a strategic complement to both growth-oriented and defensive holdings over the medium to long term.​

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As always, your advisors would be more than happy to help you with any queries.

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The views expressed in this update are not intended as an offer or solicitation for the purchase or sale of any investment or financial instrument. The views reflect the views of Ark Investment Management at the date of this document and, whilst the opinions stated are honestly held, they are not guaranteed and should not be relied upon and may be subject to change without notice. Investments entail risks. Past performance is not necessarily a guide to future performance. There is no guarantee that you will recover the amount of your original investment. The information contained in this update does not constitute investment advice and should not be used as the basis of any investment decision. Any references to specific securities or indices are included for the purposes of illustration only and should not be construed as a recommendation to either buy or sell these securities or invest in a particular sector. If you are in any doubt, please speak to us or your financial adviser as appropriate.

Issued by Ark Investment Management Ltd which is authorised and regulated by the Financial Conduct Authority. 

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