Weekly Market Review: 27th October 2025

In the United States, the government shutdown continued last week; however, it had little impact on markets as investors remained focused on geopolitics and corporate earnings. President Trump cancelled his planned meeting with President Putin in Budapest, while continuing to clash with China over rare earth controls. The US administration is attempting to shift rare earth production to regions outside China, which currently holds a dominant position in the industry. It was also reported on Wednesday that the White House may restrict the export of US software to China. President Trump also cancelled trade negotiations with Canada over an Ontario ad campaign which criticised the effectiveness of tariffs using speech’s from former President Ronald Reagan. In corporate news, Apple shares continued their surge after research firm Counterpoint reported that sales of the new iPhone 17 — the company’s flagship device — had outperformed previous generations in both China and the United States, its two key markets. Shares reached an all-time high on Monday, pushing Apple’s market capitalisation close to the $4 trillion mark. Elsewhere, Coca-Cola announced positive Q3 earnings and revealed plans to sell a large stake in one of its bottling companies. The soft drinks maker agreed a deal with London-based Coca-Cola HBC under which the bottler will acquire a 75% stake in Coca-Cola Beverages Africa from the parent company. The deal, valued at $2.6 billion, will see Coca-Cola divest its last major bottling stake and create the second-largest bottler in the company’s system. This forms part of a long-term strategy to focus on syrup production while leaving bottling and distribution to regional partners. Finally, OpenAI last week launched its own web browser, Atlas, as it moves to compete directly with major technology groups such as Google. The browser features a built-in ChatGPT interface, enabling more seamless interaction with the software. It also includes an “Agent Mode”, which allows the browser to control the cursor and keyboard to complete tasks in real time based on user prompts — such as booking tickets, hotels, or conducting research. The browser is currently available only on Mac devices but will be rolled out to Windows and mobile platforms in the coming months. In earnings, Tesla was among the most prominent names to report its Q3 results last week. The electric vehicle maker, which has seen its share price and brand struggle in recent years due to both internal and external challenges, reported strong revenue growth but failed to ease investor concerns about its future. Increased spending on AI and research reduced profits, despite a boost in EV sales ahead of the Trump administration’s decision to end federal tax credits for EV purchases in October. For the week, the S&P 500 and Nasdaq both closed higher, up 1.26% and 1.35% respectively.

In Europe, equity markets began last week at new record highs, supported by decreased volatility as investors regained composure following the previous week’s sell-off triggered by US regional bank earnings. In corporate news, L’Oréal announced that it had acquired Kering’s beauty division in a deal worth €4 billion, which includes the luxury fragrance brand Creed among other labels. Staying with luxury, Hermès reported positive earnings last week; however, results fell short of investor expectations following LVMH’s strong performance the week before. Hermès posted year-on-year sales growth of 9.6% in Q3 to €3.88 billion, with strong demand in China driving performance in Asia and sales in the Americas increasing by 14%. SAP reported mixed earnings: while its key cloud unit — which has benefitted from surging AI demand and the associated need for cloud storage — grew by 22%, the figure came in below analyst expectations, sending the stock lower on Thursday. The company also revised its 2025 guidance to the lower end of its previous forecast range. For the week, the Euro Stoxx 50 closed 0.36% higher while the broader STOXX 600 posted gains of 1.01%.

In the United Kingdom, the FTSE 100 bounced back last week, gaining for four consecutive sessions and edging closer to a new record high. The rally was driven by strength in key sectors that have a significant weighting on the index. BP and Shell were among the top performers, supported by rising oil prices after the United States imposed sanctions on two major Russian energy companies. In corporate news, IAG — the parent company of Aer Lingus and British Airways — was upgraded by Goldman Sachs to a “Buy” rating last week, with the target price raised from £4.00 to £4.70. On the macroeconomic front, inflation data also helped push the FTSE higher. September’s reading came in at 3.8%, lower than expected, fuelling hopes of further interest rate cuts. For the week, the FTSE 100 closed higher, up 2.58%.