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The euro edged lower against the U.S. dollar on Tuesday as markets digested the escalating political crisis in France, while the yen dropped to a two-month low amid speculation over who will join Sanae Takaichi’s cabinet following her recent election as leader of Japan’s ruling party.

In France, two days of urgent negotiations between outgoing Prime Minister Sébastien Lecornu and representatives of various political factions were set to begin Tuesday. However, it remained unclear what role Lecornu—who unexpectedly resigned on Monday—will play in the discussions.

The political upheaval has left France, one of Europe’s biggest economies, facing renewed instability. Lecornu’s government, which was formed only in September under President Emmanuel Macron, collapsed after both allies and opponents rejected his cabinet picks on Sunday evening, making it the shortest-lived administration in modern French history.

By 04:49 ET (08:49 GMT), the euro was down 0.4% at $1.1668, as traders also looked to comments from European Central Bank officials keeping open the door to possible future rate cuts.

Attention is also turning to Federal Reserve policymakers, though analysts say the extended U.S. government shutdown has delayed key data releases, leaving little room for a change in interest rate expectations. The Fed is widely expected to cut rates by 25 basis points later this month after already lowering them in September, according to the CME FedWatch Tool.

The U.S. Dollar Index, which tracks the greenback against a basket of major currencies, rose 0.3% after modest gains on Monday. Analysts at ING said the release of the Fed’s September meeting minutes, due on Wednesday, could have “the greatest market impact potential” this week.

Yen weakens further as Takaichi victory shifts outlook

The Japanese yen extended losses against the dollar, with USD/JPY climbing 0.3% to 150.81. The pair had already surged nearly 2% on Monday, following Takaichi’s victory in the Liberal Democratic Party leadership race, which clears the way for her to become Japan’s next prime minister.

Known for advocating aggressive fiscal stimulus, Takaichi has previously criticized the Bank of Japan’s rate hikes as “stupid” and expressed support for looser monetary policy.

Following her win, investors quickly scaled back expectations for additional tightening from the central bank.

“Her election was somewhat of a surprise, and the yen’s 2% drop versus USD is a testament to that,” analysts at ING wrote in a note.

However, they added that they see limited upside for USD/JPY, arguing that a weaker yen could exacerbate inflationary pressures and strain relations with Washington. The analysts expect a break above 150 to be temporary, rather than the beginning of a sustained rally.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Once again, Democrats and Republicans failed to reach a funding agreement, and on October 1, the U.S. entered its fourth government shutdown under Donald Trump. Six days have passed, and negotiations are still at a standstill. Even so, the markets continue to behave as if nothing had happened. Why?

First, although federal spending equals to nearly a quarter of gross domestic product, at 23% in 2024, only discretionary spending, such as national parks and museums run by the federal government, stops during a shutdown. Mandatory spending, such as Medicare, continues automatically under existing legislation.

The direct impact is also relatively small in economic terms. Goldman Sachs estimated in 2023 that federal employee salaries, typically most affected during shutdowns, account for only about 2% of GDP. Also, about 65% of federal employees continue to report to work because their positions are considered essential.

As of now, it is estimated that the economy could lose around $15 billion per week as a result. However, that is pocket change compared to a GDP of over $30 trillion. Hence, the stock market’s muted reaction: the initial drop in S&P 500 futures quickly recovered, as is usually the case during previous shutdowns.

On the other hand, if the shutdown continues, it could begin to affect the labor market, but it could also push the Federal Reserve toward a more dovish stance. In fact, according to the CME FedWatch tool, the odds of another 25 basis point rate cut at the October meeting have already risen to 95%.

Gold could also benefit from the partial shutdown of the US government. Historically, the dollar tends to weaken slightly after the start of a shutdown, and interruptions in the release of key economic data only increase uncertainty, an environment in which defensive assets such as gold tend to thrive.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

PRS REIT (LSE:PRSR) announced a solid performance for the financial year ended June 30, 2025, with net rental income rising 13% to £53.3 million and net tangible asset value (NTA) increasing 7% to 143p per share.

The company successfully completed its construction program, delivering the final 82 homes and bringing its total portfolio to 5,478 completed properties. The portfolio’s estimated annual rental value now stands at £72 million, marking the full transition from development to income generation.

Adjusted EPRA earnings per share climbed 19% to 4.4p, narrowly exceeding the dividend payout of 4.3p, which equates to a 3.8% yield. PRS REIT also guided for a 2026 dividend of 4.5p per share, reflecting confidence in sustained income growth.

Operational performance remained robust, with rent collection near 100%, occupancy at 96%, and like-for-like rental growth of around 9%. The gross-to-net ratio held steady at 20%, underscoring efficient property management.

Financially, the group strengthened its balance sheet, reducing its loan-to-value ratio to 35%. The average borrowing cost stood at 3.8% over a 14-year term, comfortably below the average net investment yield of 4.66%, supporting a healthy interest coverage profile.

As announced on September 17, 2025, PRS REIT has entered into non-binding heads of terms for the proposed sale of its portfolio to Waypoint Asset Management Limited. The expected net proceeds, after expenses and taxes, are estimated at £633.2 million.

At the current share price of 112p, the stock trades at a 19% discount to its net tangible asset value, which totaled £785 million at the end of the fiscal year.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

European equities were little changed on Tuesday, as gains in energy and luxury shares balanced losses in healthcare and industrial sectors, while French markets steadied following a politically turbulent start to the week.

By 07:13 GMT, the pan-European STOXX 600 hovered near 570.2 points, showing minimal movement. French stocks also traded flat after Monday’s sharp selloff triggered by Prime Minister Sébastien Lecornu’s sudden resignation.

The outgoing premier began two days of urgent talks on Tuesday with lawmakers from different parties in a bid to form a new governing majority.

Healthcare shares were among the weakest performers, slipping 0.6%, as Germany’s Bayer (TG:BAYN) and Denmark’s Novo Nordisk (NYSE:NVO) both lost about 2%.

Defence contractors also weighed on sentiment, with Rheinmetall (TG:RHM) and BAE Systems (LSE:BA.) each down roughly 1%, pulling the broader index slightly lower.

In contrast, oil and gas stocks advanced, buoyed by a 1.9% rise in Shell (LSE:SHEL) after the energy giant projected stronger liquefied natural gas output and improved gas trading results for the third quarter.

Luxury names outperformed as Morgan Stanley upgraded its stance on LVMH (EU:MC) and Kering (EU:KER) to “overweight” from “equal weight”, lifting their shares by 1.8% and 2.2%, respectively.

Among notable movers, B&M (LSE:BME) plunged around 15% after the discount retailer forecast a 28% drop in first-half core earnings and signaled a weaker annual profit outlook.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

U.S. stock futures edged lower on Tuesday, with sentiment weighed down by the ongoing federal government shutdown, which has dulled enthusiasm generated by recent dealmaking in the artificial intelligence sector. Attention is turning to Tesla’s potential unveiling of a lower-priced Model Y, Dell’s closely watched analyst day, and Constellation Brands’ better-than-expected earnings.

Futures drift lower

By 02:57 ET, Dow futures were down 101 points (0.2%), while S&P 500 futures slipped 9 points (0.1%) and Nasdaq 100 futures eased 28 points (0.1%).

Both the S&P 500 and the Nasdaq Composite closed at fresh record highs in the previous session, fueled largely by news of a deal between Advanced Micro Devices (NASDAQ:AMD) and OpenAI. Under the agreement, AMD will supply AI chips to OpenAI in exchange for a 10% stake in the ChatGPT developer — a partnership that could generate tens of billions in annual revenue. The news sent AMD shares surging 23.7%, while the Philadelphia Semiconductor Index climbed 2.9%.

Still, the broader economic outlook remains clouded. The week-long government shutdown has delayed key U.S. economic reports, making it harder for markets and Federal Reserve policymakers to gauge the path of interest rates. In the absence of official data, investors and officials are relying on private indicators to assess economic trends.

Some Fed-related releases will still appear despite the shutdown, including a New York Fed survey on consumer expectations due later today. Several Fed officials are also set to speak, though analysts say their comments may have limited impact without new data to reference.

Tesla may unveil a more affordable Model Y

Tesla (NASDAQ:TSLA) is widely expected to unveil a cheaper version of its Model Y SUV on Tuesday, according to multiple media reports.

Over the weekend, the company stirred anticipation among fans by posting two teaser videos on X, hinting at a major reveal on October 7. However, it remains unclear whether the company will host a live event or make a virtual announcement.

CEO Elon Musk had previously canceled plans for a $25,000 entry-level EV, Reuters reported, but sources now suggest the new vehicle will be a more “affordable” version of Tesla’s current lineup.

Tesla recently posted record quarterly sales, boosted by the expiration of U.S. EV tax credits, which effectively raised prices by $7,500. Analysts expect deliveries to slow later in 2025 as those incentives fade.

Dell’s analyst day in spotlight

Investors are also watching Dell Technologies (NYSE:DELL), which hosts an analyst day expected to shed more light on the ongoing AI hardware boom.

Back in August, Dell raised its full-year sales and profit forecasts, driven by surging demand for AI-optimized servers that rely on Nvidia chips.

While demand for such high-performance systems has soared, production costs remain a concern, with some analysts warning of margin pressure. Still, Dell has upgraded its forecast for AI server revenue in fiscal 2026 to $20 billion, up from $15 billion previously.

Constellation Brands reports smaller sales drop

Shares of Constellation Brands (NYSE:STZ) rose in after-hours trading after the beverage maker reported a smaller-than-expected decline in quarterly sales.

Beer demand remained firm despite worries that President Donald Trump’s immigration crackdown could hurt spending among Hispanic consumers, a key demographic for Corona and Modelo beers.

The company maintained its full-year outlook for sales and profits, which had been sharply cut in September due to the economic impact of Trump’s policies.

CEO Bill Newlands acknowledged that while the company’s beer segment outperformed rivals, the “socioeconomic environment” has been “challenging” and has “dampened consumer demand.”

Like competitors Molson Coors and Brown-Forman, Constellation continues to face pressure from higher U.S. aluminum tariffs, which have squeezed profit margins.

Gold hits record before easing

Gold prices briefly touched a new record near $4,000 per ounce, supported by strong safe-haven demand amid U.S. political gridlock and growing bets that the Federal Reserve will cut rates later this month.

Traders widely expect the Fed to reduce borrowing costs by 25 basis points at its October 28–29 meeting, according to the CME FedWatch Tool. The central bank resumed its easing cycle in September and has signaled that more rate cuts may follow before year-end.

This environment has favored non-yielding bullion, which typically performs well when interest rates are falling.

Additional support came from People’s Bank of China data showing continued gold purchases.

Spot gold dipped 0.3% to $3,950.58/oz after reaching $3,977.45/oz earlier in the session, while December gold futures eased 0.1% to $3,973.80/oz by 03:43 ET.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Gold prices climbed in Asian trading on Tuesday, hovering near record highs around $4,000 an ounce, as investors flocked to the precious metal amid escalating political uncertainty across the U.S., Japan, and France.

Expectations for further U.S. interest rate cuts continued to support the metals market, with traders closely watching a series of upcoming Federal Reserve speeches for policy clues. Additional momentum came from People’s Bank of China (PBOC) data showing another month of increased gold purchases.

Spot gold rose 0.4% to $3,974.57 per ounce, after touching an intraday peak of $3,977.45, while December gold futures gained 0.6% to $3,998.12, having briefly hit $4,000.05 earlier in the session.

Political instability drives demand for gold

The global wave of political tensions has spurred renewed interest in safe-haven assets. In the U.S., a prolonged government shutdown and ongoing congressional gridlock have deepened concerns about fiscal governance.

In France, political turmoil intensified following the resignation of Prime Minister Sébastien Lecornu, who was immediately reappointed by President Emmanuel Macron to help negotiate a path forward. Calls for a snap parliamentary election are growing, with both far-right and far-left parties pushing for a leadership change.

Meanwhile, Japan made history as Sanae Takaichi, a noted fiscal dove, was elected leader of the Liberal Democratic Party, setting her on course to become the country’s first female prime minister. Although Japanese equities initially rallied on the news, the yen weakened sharply and bond prices fell, as investors questioned how Takaichi plans to fund her stimulus-heavy and tax-cutting agenda.

The combination of these developments kept investors anchored to gold, reinforcing its position as a hedge against geopolitical and financial instability.

Precious and industrial metals extend gains

Other precious metals also strengthened after recent rallies to multi-year highs. Spot platinum added 0.5% to $1,632.51 per ounce, while spot silver edged 0.1% higher to $48.56 per ounce.

Among industrial metals, benchmark copper futures on the London Metal Exchange advanced 0.7% to $10,724.65 a ton, and COMEX copper futures climbed 0.8% to $5.0820 per pound. Copper prices were buoyed by continued uncertainty over production at Freeport-McMoRan’s Grasberg mine in Indonesia, one of the world’s largest copper operations, which remains idle following a fatal accident in early September.

China extends gold buying streak

According to official data released Tuesday, the People’s Bank of China expanded its gold reserves in September for the 11th consecutive month. The central bank’s holdings reached 74.06 million fine troy ounces, up from 74.02 million the previous month. The total value of its reserves also rose sharply amid surging bullion prices.

China’s sustained gold accumulation reflects its effort to diversify foreign exchange reserves away from the U.S. dollar and Treasury securities, particularly as tensions with Washington continue to strain bilateral relations.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Oil prices continued to climb on Tuesday after OPEC+ announced a smaller-than-anticipated production hike for November, easing some market concerns over an expanding supply glut.

By 06:23 GMT, Brent crude futures were up 19 cents, or 0.29%, to $65.66 a barrel, while U.S. West Texas Intermediate (WTI) gained 19 cents, or 0.31%, to $61.88. Both benchmarks had already finished more than 1% higher in the prior session following OPEC+’s decision to raise collective production by 137,000 barrels per day starting next month.

The modest increase came as a surprise to traders who had expected a more aggressive supply boost. According to analysts at ING, the move suggests that OPEC+ remains cautious about expanding its production share amid forecasts of a potential surplus later this year and into 2026.

“Brent had fallen by around $5 per barrel last week in response to earlier expectations of a larger supply boost, so this mild rebound seems reasonable,” said Anh Pham, a senior analyst at LSEG.

“For now, the market still appears capable of accommodating the extra volume, and we have yet to see a shift into contango at the front of the curve,” he added.

So far in 2025, OPEC+ has lifted its output targets by more than 2.7 million barrels per day, equivalent to about 2.5% of global demand.

Geopolitical tensions have also provided support for prices, with the Russia–Ukraine conflict continuing to disrupt energy flows. Russia’s Kirishi oil refinery halted operations at its key CDU-6 distillation unit after an October 4 drone strike and fire, and recovery is expected to take roughly a month, two industry sources said on Monday.

Despite these supportive factors, crude prices remain under pressure from rising production across both OPEC+ and non-OPEC+ members. Analysts warn that any slowdown in demand—particularly if weak economic growth results from U.S. trade tariffs—could deepen the expected surplus and limit future price gains.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

B&M European Value Retail S.A. (LSE:BME) has unveiled a new strategic initiative, ‘Back to B&M Basics,’ designed to address operational inefficiencies and reinvigorate like-for-like sales growth in the UK market. The announcement follows a 4.0% rise in revenue during the first half of FY26, supported by continued store expansion and strong performance in France. However, recent operational challenges have weighed on profitability, prompting the company to refocus on its core retail strengths.

The strategy includes price optimization, enhanced promotional activity, and improved product availability across UK stores. These measures are aimed at restoring sustainable growth and stabilizing profit margins over the next 12 to 18 months. Management expects the plan to strengthen customer loyalty, improve efficiency, and reinforce B&M’s leadership position in the UK discount retail sector.

From a market perspective, B&M’s stock remains supported by strong valuation metrics, including a low P/E ratio and high dividend yield, appealing to both value and income investors. Although high leverage and slowing free cash flow growth present risks, the company’s robust cash generation and positive technical momentum underpin a generally optimistic outlook. The most recent earnings call also conveyed confidence in B&M’s strategic direction and recovery trajectory.

About B&M European Value Retail S.A.

B&M European Value Retail S.A. is one of the UK’s leading discount retailers, offering a wide range of household goods, grocery items, and general merchandise at competitive prices. The company operates through its B&M UK, B&M France, and Heron Foods divisions, with a focus on value, variety, and convenience. Through disciplined expansion and a commitment to affordability, B&M continues to deliver strong appeal to cost-conscious consumers across its core markets.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Great Portland Estates plc (LSE:GPE) reported a robust second quarter for 2025, securing £37.6 million in new leasing deals, surpassing the total leasing volume achieved during the previous year. The company’s strong performance underscores sustained tenant demand for its premium office and retail spaces, particularly in central London, where limited supply continues to support rental growth.

Amid a challenging macroeconomic backdrop, GPE remains strategically positioned, advancing its portfolio expansion through targeted acquisitions and refurbishments. The company’s ongoing investment in sustainable, high-quality developments and the strength of its experienced management team are expected to drive continued value creation and income growth in the coming quarters.

While GPE demonstrates solid operational momentum, its financial outlook reflects income and cash flow volatility, alongside rising leverage and liquidity constraints. The technical outlook appears bearish, but the company’s reasonable valuation may present opportunities for value-oriented investors seeking exposure to London’s prime real estate market.

About Great Portland Estates plc R.E.I.T.

Great Portland Estates plc (GPE) is a real estate investment trust (REIT) specializing in the development and management of premium office and retail properties across central London. Renowned for its focus on sustainability, design excellence, and asset transformation, GPE continues to capitalize on high occupational demand in a market characterized by limited Grade A supply, delivering long-term value for shareholders and tenants alike.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Liontrust Asset Management PLC (LSE:LIO) reported net outflows of £1.2 billion for the quarter ended September 2025, resulting in a 2.7% decline in assets under management and advice to £22 billion. While the period was marked by continued market volatility and investor caution, the company remains optimistic about the outlook for active management, citing a growing shift among clients seeking to diversify away from U.S.-centric passive strategies.

Liontrust continues to see positive traction with institutional investors and wealth managers, particularly in international markets, where its investment expertise and expanding distribution network are driving stronger engagement. The firm’s robust investment processes, combined with its reputation for disciplined active management, are expected to support its long-term growth and market positioning.

The company’s outlook remains underpinned by a solid balance sheet, a strong dividend yield, and a reasonable P/E ratio, contributing to an attractive valuation. However, sluggish revenue and cash flow growth present ongoing challenges. From a technical perspective, trading indicators are mixed, with short-term bearish movements partially offset by bullish momentum in longer-term trends.

About Liontrust Asset Management

Liontrust Asset Management PLC is a specialist independent fund management company focused on active investment strategies. The firm offers a diverse range of products, including sustainable and economic advantage funds, multi-asset portfolios, and global equity strategies. Liontrust serves institutional investors, wealth managers, and retail clients across the UK and internationally, with a growing presence in South America, Australia, South Africa, and the Middle East. The company’s mission is to deliver superior long-term returns through disciplined, research-driven active management.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.