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80 Mile Plc (LSE:80M) has signed non-binding heads of terms with Canadian-listed Badlands Resources Inc. for the proposed sale of its Hammaslahti copper-zinc and Outokumpu copper-VMS exploration projects in Finland.

The proposed transaction includes CAD$1 million in staged cash payments, a 19.99% equity interest in Badlands Resources and up to CAD$4 million in additional payments linked to specified project development milestones.

The agreement covers the proposed acquisition of 100% of the Finnish projects by Badlands, subject to due diligence, regulatory approvals, shareholder approvals and the completion of definitive transaction documentation.

80 Mile said the proposed disposal forms part of its strategy to reduce commitments to non-core Finnish exploration assets while directing resources towards its operations in Greenland and Italy.

Proposed Transaction Includes CAD$1 Million in Cash and 19.99% Equity Stake

Under the non-binding heads of terms, Badlands Resources would acquire full ownership of the Hammaslahti and Outokumpu licence package.

The proposed consideration comprises staged cash payments totalling CAD$1 million and the issuance of shares representing 19.99% of Badlands’ share capital to 80 Mile or its subsidiary, FinnAust Mining Finland Oy.

The agreement also provides for contingent payments of up to CAD$4 million, dependent on the achievement of specified technical and development milestones.

These milestones relate to mineral resource estimates prepared in accordance with Canada’s NI 43-101 reporting standards and pre-feasibility study requirements at the two projects.

The additional payments are conditional and would only become payable if the relevant milestones are achieved under the terms of a definitive agreement.

The proposed transaction includes an exclusivity arrangement between the parties while they progress the necessary due diligence and transaction documentation.

No completed sale has been announced, and the terms remain non-binding at this stage.

Finnish Projects Recorded Losses Exceeding £2.3 Million in 2025

The assets included in the proposed disposal are located in established mining districts in Finland and comprise the Hammaslahti copper-zinc project and the Outokumpu copper volcanogenic massive sulphide (VMS) exploration licences.

Both projects have been subject to historical exploration activities, including geological mapping, geophysical surveys and drilling.

80 Mile holds the Finnish exploration interests through FinnAust Mining Finland Oy, which has operated in the country since 2010.

The company reported that the Finnish projects have a current book value of nil and generated losses exceeding £2.3 million during 2025.

The proposed disposal would transfer ownership of the projects to Badlands while allowing 80 Mile to retain financial exposure through its proposed equity interest and contingent milestone payments.

80 Mile said the transaction is intended to reduce its future development and funding commitments associated with the Finnish assets.

Greenland and Italian Operations Remain Strategic Priorities

80 Mile is pursuing a strategy focused on hydrocarbons and critical minerals in Greenland, alongside industrial gas and biofuels operations in Italy.

The company has identified these activities as priorities for capital allocation and operational development.

In Greenland, its portfolio includes the Jameson Project in East Greenland, covering approximately 8,429 square kilometres across three licences.

An independent assessment completed in 2025 estimated P10 recoverable oil resources of 13.03 billion barrels across the basin, with 80 Mile’s retained interest corresponding to approximately 3.9 billion barrels.

These figures represent resource estimates rather than confirmed production or commercially recoverable reserves.

The company also has a funding agreement with Greenland Energy Company covering two planned exploration wells, each targeting a depth of approximately 3,500 metres.

Alongside its Greenland interests, 80 Mile is developing its Italian industrial gas and biofuels activities as part of its wider energy portfolio.

The proposed Finnish asset sale would allow the company to concentrate its direct development activities on these operations while retaining an interest in the copper exploration projects through Badlands.

Completion Subject to Due Diligence and Regulatory Approvals

The proposed acquisition remains at the heads-of-terms stage and is subject to several conditions before it can proceed.

These include satisfactory due diligence, the negotiation and execution of definitive agreements, and any required regulatory and shareholder approvals.

If completed on the proposed terms, 80 Mile or FinnAust would receive CAD$1 million in staged cash consideration and a 19.99% shareholding in Badlands Resources, with the possibility of additional milestone-linked payments of up to CAD$4 million.

The equity component would provide continued exposure to the Finnish exploration assets through Badlands rather than direct ownership and operation.

80 Mile has not provided a confirmed completion date for the transaction.

Further announcements will be required to establish whether definitive terms are agreed and the conditions for completion are satisfied.

Clean Power Hydrogen plc (LSE:CPH2) has provided an update on its investigation into an incident involving its 1MW MFE220 membrane-free electrolyser during factory acceptance testing on 28 May 2026, identifying several potential contributing factors and outlining remedial engineering work.

The AIM-listed hydrogen technology developer said its internal investigation, which remains subject to external verification, identified gas velocity near valve V705, component specifications, system cleanliness and compliance with industrial gas guidance as the most likely factors associated with the incident.

According to the company’s preliminary findings, the incident was not attributed to a failure of its proprietary electrolyser stacks or separator vessels.

Clean Power Hydrogen has initiated additional research, redesign and testing activities to address the identified issues before incorporating changes into its technology and manufacturing processes.

Separately, the company announced changes to its proposed financing and commercial arrangements with Hidrigin, including the cancellation of a planned secured convertible loan note and discussions regarding an expanded technology licensing agreement.

Investigation Identifies Potential Factors Behind May Testing Incident

The incident occurred on 28 May 2026 during factory acceptance testing of Clean Power Hydrogen’s 1MW MFE220 membrane-free electrolyser system.

Following the event, the company conducted an internal technical investigation to assess the circumstances and identify potential contributing factors.

The investigation identified a combination of issues involving gas velocity in the vicinity of valve V705, component specifications, system cleanliness and the application of relevant industrial gas guidance.

Clean Power Hydrogen said these factors were considered the most likely contributors to the incident, although external verification of the investigation findings remains ongoing.

The company’s assessment did not identify a failure of the proprietary electrolyser stacks or separator vessels as the cause.

The findings remain subject to the outcome of the external verification process.

Engineering Redesign and Additional Testing Under Way

Clean Power Hydrogen has commenced remedial research, engineering redesign and testing activities following the investigation.

The work covers component design, system cleanliness procedures, manufacturing controls and operational monitoring arrangements.

The company intends to incorporate the results into a revised technical design package, which will be made available to existing technology licensees and prospective manufacturing partners.

The engineering programme is intended to address the factors identified during the investigation and establish updated specifications and procedures for future systems.

Clean Power Hydrogen has not provided a completion date for the redesign and testing activities in the supplied update.

The company continues to develop its membrane-free electrolysis technology, which is designed to produce hydrogen and oxygen without the membranes used in conventional electrolyser systems.

Hidrigin Convertible Loan Note Proposal Discontinued

In a separate commercial development, Clean Power Hydrogen and Hidrigin have agreed not to proceed with a previously proposed secured convertible loan note arrangement.

The companies have also addressed an interim payment associated with an existing sales contract, with the payment having been repaid.

Instead of pursuing the proposed financing arrangement, the parties are discussing an extended technology licence and a broader strategic partnership.

The revised commercial arrangements under consideration include rights for Hidrigin to use Clean Power Hydrogen’s technology for its own purposes in the United States.

The proposed changes represent a shift from the earlier financing structure towards a technology licensing and commercial relationship.

The company has not disclosed final terms for the proposed extended licence or confirmed that a definitive agreement has been completed.

Technology Licensing Remains Central to Business Strategy

Clean Power Hydrogen is continuing its transition towards a capital-light operating model focused on technology development and licensing rather than manufacturing electrolyser systems entirely in-house.

The company has developed proprietary membrane-free hydrogen and oxygen production technology over approximately a decade, supported by a portfolio of patents.

Its commercial strategy involves working with manufacturing and technology partners to develop and deploy electrolyser systems for hydrogen production applications.

The revised discussions with Hidrigin form part of this licensing-focused approach, while the engineering work following the May incident is intended to inform future system designs and manufacturing requirements.

Clean Power Hydrogen’s next operational steps include completing the external verification of its investigation findings, progressing the remedial engineering programme and developing the revised design package for licensees and prospective partners.

Further details of the proposed Hidrigin licensing arrangements remain subject to the outcome of discussions between the companies.

Gamma Communications plc (LSE:GAMA) has postponed shareholder meetings relating to its proposed acquisition by Bradbury Bidco Limited, a company backed by funds managed by Epiris GP III, following lower-than-required shareholder voting participation.

The recommended cash acquisition values Gamma shares at 1,120 pence each and is structured as a court-sanctioned scheme of arrangement.

Gamma said the court meeting and general meeting have been adjourned to 2 November 2026 to provide shareholders with additional time to submit their votes.

The company attributed the decision partly to changes in its shareholder register, including the recent acquisition of shareholdings by merger arbitrage funds.

Gamma’s board continues to unanimously recommend the transaction, while Bidco has confirmed that its offer of 1,120 pence per share represents its final terms.

Shareholder Meetings Rescheduled Following Low Voting Participation

Gamma’s board agreed to adjourn the court meeting and general meeting after identifying insufficient shareholder participation in the voting process.

The company said the level of participation had been affected in part by merger arbitrage investors that had recently established positions in Gamma shares.

The meetings have been rescheduled for 2 November 2026, allowing additional time for shareholders to vote on the proposed acquisition.

Shareholders who have not submitted proxy voting instructions are being encouraged by the board to do so before the revised deadlines. Those who have already submitted instructions may amend them in accordance with the updated voting arrangements.

The proposed transaction remains subject to shareholder approval and completion of the applicable scheme of arrangement process.

Bradbury Bidco Confirms Final Cash Offer of 1,120 Pence Per Share

Bradbury Bidco Limited, an acquisition vehicle for funds managed by Epiris GP III, has confirmed that its cash offer of 1,120 pence per Gamma share represents its final terms.

The acquisition is intended to proceed through a court-sanctioned scheme of arrangement, under which eligible Gamma shareholders would receive the agreed cash consideration if the transaction becomes effective.

Gamma’s directors have maintained their unanimous recommendation that shareholders approve the scheme.

The board’s recommendation remains unchanged following the adjournment of the shareholder meetings.

German Merger Clearance Obtained as Regulatory Process Continues

Gamma and Bidco have confirmed that German merger clearance has been secured in connection with the proposed acquisition.

The parties have also submitted all required regulatory filings, although the transaction remains subject to the outstanding approvals and conditions necessary for completion.

Following progress with the regulatory process, Gamma and Bidco now expect the acquisition to become effective during the first quarter of 2027.

The revised timetable reflects the ongoing approval process and the rescheduling of the shareholder meetings.

Completion remains conditional on the relevant requirements being satisfied, including shareholder approval and court sanction of the scheme.

Gamma Board Maintains Recommendation Ahead of November Vote

Gamma’s board continues to support the proposed acquisition and is encouraging shareholders to participate in the rescheduled meetings.

The company provides voice, data, connectivity and unified communications services to business customers through enterprise and reseller channels across Europe.

The proposed transaction would result in Gamma being acquired by Bradbury Bidco Limited if the scheme receives the necessary approvals and becomes effective.

The next scheduled stage in the shareholder approval process is 2 November 2026, when the adjourned court meeting and general meeting are due to take place.

Gamma and Bidco currently anticipate completion in the first quarter of 2027, subject to the remaining transaction conditions.

Cora Gold Limited (LSE:CORA) has reported additional drilling results from its 2026 mineral resource growth programme at the Sanankoro Gold Project in southern Mali, identifying gold mineralisation beyond the boundaries of the existing resource model at the Selin deposit.

The latest results cover 21 reverse circulation (RC) drill holes targeting extensions to the main mineralised zone and a separate western zone. The company reported multiple gold intercepts across both areas, with drilling indicating continuity of mineralisation outside the currently modelled resource.

Cora said the results suggest that gold mineralisation remains open at depth, providing additional targets for resource evaluation as the company continues its exploration programme.

The Sanankoro project currently has a reported mineral resource of 1.044 million ounces of gold and a projected mine life of 10.2 years.

Drilling Identifies Extensions to Selin Gold Mineralisation

The latest drilling programme focused on extending the known mineralised areas at Selin, one of the deposits within the wider Sanankoro Gold Project.

Cora completed 21 RC drill holes, with results identifying mineralisation in both the main Selin zone and an underexplored western area described as a blind zone.

The western zone contains mineralisation that had not previously been incorporated into the existing resource model, while drilling in the main zone identified additional mineralised intervals at greater depths.

According to the company, the results indicate continuity of gold mineralisation and suggest that further extensions may be present below the currently defined resource boundaries.

The newly identified intervals will be assessed as part of the company’s ongoing geological modelling and mineral resource evaluation.

Additional Mineralisation May Contribute to Resource Update

Cora expects the results from the Selin drilling programme to contribute to potential additions to the project’s inferred mineral resources following further modelling.

The company is evaluating mineralisation in the western zone alongside deeper extensions to the main Selin deposit to determine their potential inclusion in future resource estimates.

Any additional resources could be considered in subsequent open-pit optimisation studies, although the impact on mine design, project economics and mine life has not yet been established.

The latest results follow previously reported high-grade gold intercepts from Zone B, another target within the Sanankoro project.

Assay results from several additional exploration zones remain outstanding and are expected to provide further information for the company’s resource growth programme.

Sanankoro Resource Currently Stands at 1.044 Million Ounces

The Sanankoro Gold Project has a reported mineral resource of 1.044 million ounces of gold, with a projected mine life of 10.2 years based on existing development plans.

Cora’s 2026 drilling programme is designed to investigate extensions to established deposits and assess additional exploration targets near the existing resource areas.

The company is seeking to increase the defined mineral resource through drilling, geological interpretation and subsequent resource modelling.

The Selin results form part of this work, with mineralisation identified beyond the current model requiring further assessment before any additional ounces can be incorporated into an updated resource estimate.

Further Assay Results and Resource Modelling Planned

Cora is continuing its assessment of the 2026 exploration results, including the newly identified mineralisation at Selin and previously reported drilling from Zone B.

Outstanding assay results from other exploration zones will also be considered as the company evaluates potential additions to the Sanankoro resource base.

The programme is focused on defining the extent of gold mineralisation within and around existing deposits, with particular attention to extensions that could be incorporated into future mine planning.

Cora has not provided a quantified estimate of additional gold resources arising from the latest 21 drill holes.

Further geological modelling and resource estimation work will be required to determine whether the newly identified mineralised zones can contribute to an updated resource statement or changes to the project’s existing 10.2-year mine life.

Beeks Financial Cloud Group plc (LSE:BKS) reported an 11% increase in revenue to £40.0 million for the financial year ended 30 June 2026, alongside an 18% rise in underlying EBITDA to £16.1 million, as the cloud infrastructure provider expanded its services to financial institutions and exchanges.

Gross profit increased by 10% during the period, while the underlying EBITDA margin reached approximately 40%. The company also reported a 15% increase in annualised committed monthly recurring revenue (ACMRR) to £34.0 million.

Net cash declined to £0.6 million, reflecting upfront hardware expenditure associated with contracts secured during the fourth quarter. Beeks said these contracts are expected to generate £17.7 million in future billings.

The company attributed its revenue growth to activity across its Exchange Cloud, Proximity Cloud and Private Cloud services, alongside the commercial development of its AI-powered Market Edge Intelligence analytics product.

Cloud Services and AI Analytics Contribute to Revenue Growth

Beeks reported increased business activity across its cloud infrastructure services, which provide computing, connectivity and analytics capabilities to banks, exchanges and other financial market participants.

The company’s Exchange Cloud, Proximity Cloud and Private Cloud offerings contributed to financial performance during the year, supported by new contracts and expansion into additional geographic markets.

Market Edge Intelligence, the company’s AI-powered analytics platform, secured contracts worth more than $10 million and placements with Tier 1 financial institutions.

The product forms part of Beeks’ expansion into analytics services alongside its established cloud infrastructure and connectivity operations.

During the reporting period, Beeks secured new business with exchanges in Canada, Latin America and Thailand, as well as major banking institutions in South Africa and Canada.

These agreements expanded the company’s customer relationships across international financial markets.

Recurring Revenue Rises 15% to £34 Million

Annualised committed monthly recurring revenue increased by 15% to £34.0 million at the end of June 2026.

The measure reflects the annualised value of committed recurring customer revenue and forms part of Beeks’ reporting on contracted business activity.

Beeks also reported that its revenue-sharing agreements with cryptocurrency exchange Kraken and Australian Securities Exchange operator ASX became profitable on a monthly basis during the year.

These arrangements represent an alternative commercial structure within the company’s business model, alongside its established cloud infrastructure contracts.

The company continued investing in hardware to support new customer agreements, including contracts secured in the final quarter of the financial year.

This expenditure contributed to the reduction in net cash to £0.6 million, although Beeks said the associated contracts are expected to produce £17.7 million in future customer billings.

FY27 Revenue Guidance Set at £43 Million to £48 Million

Beeks has provided revenue guidance of between £43 million and £48 million for the financial year ending 30 June 2027.

The forecast represents anticipated year-on-year revenue growth of approximately 7.5% to 20%, compared with the £40.0 million reported for FY26.

The company also expects an underlying EBITDA margin of between 38% and 42% for FY27, compared with approximately 40% in the previous financial year.

Its financial expectations are supported by the £34.0 million ACMRR position reported at the end of FY26 and anticipated activity across its cloud and analytics services.

The forecasts remain subject to trading performance and the timing of contract delivery during the financial year.

Beeks Global Network Launch Planned

Beeks is preparing to launch the Beeks Global Network, which will introduce additional connectivity products for financial market participants.

The planned offering forms part of the company’s strategy to expand its infrastructure services and provide connectivity solutions alongside its existing cloud computing and analytics products.

Management identified the size of the potential market and what it described as limited competition as factors supporting its expansion plans.

The company continues to focus on financial services customers, including banks, exchanges and trading firms requiring low-latency computing infrastructure and connectivity to trading venues and public cloud environments.

Beeks enters FY27 with £34.0 million in annualised committed monthly recurring revenue, a pipeline of contracted future billings and planned product launches, while maintaining its revenue and margin guidance for the year.

MindGym plc (LSE:MIND) reported a 15% year-on-year decline in revenue to £11.5 million for the first half of its 2027 financial year, reflecting reduced corporate spending on human resources and challenging trading conditions.

The AIM-listed behavioural science and business improvement company recorded an adjusted EBITDA loss of £2.6 million for the period, as lower revenue and a greater proportion of face-to-face service delivery affected profitability.

The company said the shift towards in-person delivery contributed to lower margins, while the reduction in revenue outweighed the impact of £9.4 million in operating cost savings implemented over the previous 18 months.

MindGym has revised its full-year expectations, forecasting revenue of approximately £25 million and an underlying EBITDA loss of between £1.2 million and £1.5 million.

Revenue Decline and Cost Reductions Affect First-Half Performance

MindGym attributed the reduction in first-half revenue to lower spending by corporate clients on human resources and related services.

The company has been implementing operational changes aimed at reducing its cost base while adjusting its service offering to reflect changing customer requirements.

Operating cost savings totalled £9.4 million over the past 18 months. However, the company reported an adjusted EBITDA loss of £2.6 million for the first half, compared with the lower revenue base and a shift towards delivery methods carrying reduced margins.

MindGym said the conversion of prospective business opportunities into contracted revenue had been slower than anticipated, contributing to its revised full-year financial guidance.

Subscription Revenue and New Services Form Part of Strategic Changes

MindGym is continuing its transition from individual training engagements towards longer-term behavioural change services for corporate customers.

The company reported growth in recurring licence revenue during the first half, alongside expansion of its MindGym Membership subscription offering.

It also launched a diagnostics and analytics service designed to support corporate clients in assessing and managing behavioural change initiatives.

These developments form part of MindGym’s strategy to increase recurring revenue and expand its relationships with clients across human capital management, business transformation and learning and development.

The company operates internationally, with offices in London, New York and Singapore, providing behavioural science-based products and services to corporate customers.

Full-Year Revenue Forecast at Approximately £25 Million

Management expects trading to improve during the second half of the financial year and anticipates that the business will generate cash during the period.

However, slower conversion of its prospective sales pipeline has resulted in a revised outlook for the full year.

MindGym now expects:

• Full-year revenue of approximately £25 million.
• An underlying EBITDA loss of between £1.2 million and £1.5 million.
• Improved second-half trading and positive cash generation.

These expectations reflect management’s current assessment of trading conditions and anticipated customer activity during the remainder of the financial year.

Cash Collections Reach £16 Million as Strategic Review Continues

MindGym reported cash collections of approximately £16 million during the first half, reflecting its ongoing focus on working capital management.

The company ended September 2026 with net debt of £1.6 million and said it maintained adequate liquidity.

Separately, MindGym’s board is conducting a private strategic review that could result in an offer for the company.

The review remains ongoing, and the supplied update does not confirm that an offer has been made or that a transaction will take place.

MindGym is scheduled to publish its half-year financial results in December 2026, when further details of its trading performance, financial position and operational progress are expected.

Mulberry Group plc (LSE:MUL) reported an 18% year-on-year increase in group sales for the 26 weeks ended 26 September 2026, with revenue growth across all geographic regions as the British luxury accessories company continued implementing its full-price sales strategy.

The company recorded like-for-like sales growth in key markets, alongside an increase in wholesale revenue. Trading was supported by demand for new and established handbag collections, while Mulberry also reported increased brand visibility following its Mulberry by Christopher Kane runway presentation at London Fashion Week.

Mulberry said it continued to limit promotional activity during the period, reducing the proportion of sales generated through discounting by 300 basis points. The approach forms part of its efforts to rebuild gross margins and increase the contribution from full-price sales.

International Markets and Wholesale Channels Contribute to Growth

The United States recorded particularly notable sales growth during the first half, supported by digital trading and the launch of Mulberry products through Bloomingdale’s Marketplace.

European operations also reported increased sales, while the Asia Pacific region achieved like-for-like growth.

Wholesale and third-party distribution channels expanded during the reporting period, accounting for 17% of total group sales. The company is developing these channels as part of its strategy to increase distribution in selected international markets.

Mulberry operates through its own retail stores, digital platforms, wholesale relationships and franchise partners, with products including its Bayswater and Lily handbag collections.

Reduced Promotional Activity Supports Margin Strategy

Mulberry continued implementing its “Back to the Mulberry Spirit” strategy, which focuses on product development, brand positioning and customer engagement.

A central element of the programme is reducing reliance on discounted sales while increasing full-price transactions. The company reported a 300-basis-point reduction in the proportion of promotional sales during the first half, consistent with its stated objective of rebuilding gross margins.

The strategy also includes developing new product collections, maintaining established handbag ranges and expanding distribution through selected retail partnerships.

Mulberry said customer engagement increased during the period, supported by product launches and marketing activity, including its London Fashion Week presentation.

Medium-Term Revenue and Profitability Targets Maintained

Mulberry continues to target annual revenue exceeding £200 million and an adjusted earnings before interest and tax (EBIT) margin of 15% over the medium term.

These objectives form part of the company’s broader plan to restore profitability through higher full-price sales, gross margin improvements and development of its international distribution network.

The group enters the second half of its financial year against what it described as a challenging macroeconomic environment.

Management identified its upcoming product pipeline, customer engagement initiatives and continued emphasis on full-price sales as priorities for the remainder of the year.

The company has not provided a specific timetable for achieving its medium-term revenue and adjusted EBIT margin targets in the supplied update.

Yardeni Research has revised its S&P 500 year-end forecast to 7,900 from 8,400, reflecting expectations that investor risk aversion will continue to affect equity valuation multiples.

The research firm left its 2027 earnings estimate unchanged at $425 per share, compared with a market consensus of $423.08, while reducing its year-end forward price-to-earnings target from 19.8 to 18.6.

The previous S&P 500 objective of 8,400 had been moved to mid-2027 before the latest revision.

Yardeni continues to forecast that the US economy will avoid recession through 2029, distinguishing its valuation concerns from its expectations for corporate profitability.

Valuation Assumptions Drive Revised Market Forecast

Yardeni said risk-averse market conditions, which emerged in mid-September, are likely to persist and could lead investors to assign lower earnings multiples to equities.

The firm maintained its expectations for corporate earnings but reduced the valuation it expects the market to apply to those profits.

This adjustment resulted in the lower year-end S&P 500 target.

Despite the revised forecast, Yardeni said a recovery towards 7,900 remains possible before the end of the year.

The firm also identified additional potential investment opportunities arising from lower equity valuations.

Semiconductor Losses Lead US Equity Market Declines

The S&P 500 declined 1.1% on Wednesday to close at 7,718.94.

The Nasdaq Composite and Russell 2000 both fell 1.9%, while the SOXX semiconductor exchange-traded fund recorded a 4.5% decline.

Yardeni attributed part of the change in technology-sector sentiment to increasing competition in artificial intelligence and uncertainty surrounding the financial returns on large-scale AI investment.

CoreWeave (NASDAQ:CRWV), a provider of cloud infrastructure for AI applications, recorded a 16% share-price decline amid concerns about its ability to service outstanding debt.

The firm cited these developments in its assessment of market conditions affecting technology-related valuations.

Consumer Inflation Increases 0.6% in September

September’s US consumer price index report showed a 0.6% monthly increase in headline inflation, the largest rise since March.

Energy prices increased 9.3%, accounting for part of the overall monthly advance.

The report prompted a change in market expectations for Federal Reserve interest rates.

The probability assigned to an October rate increase rose from 21% to 36%, after briefly reaching 45%. Market expectations also shifted towards the possibility of two interest rate increases before year-end.

Core inflation increased 0.3% during September.

Yardeni reported that 52% of consumer price index categories were experiencing annual price increases above 3%.

Durable goods prices advanced 0.9%, while computer and electronics prices recorded their highest three-month inflation rate on record.

The firm linked the increase in computer and electronics prices to semiconductor demand associated with artificial intelligence.

Bond Yields and Geopolitical Developments Influence Outlook

Yardeni said the 10-year US Treasury yield appeared to be stabilising, consistent with the firm’s expectations from the preceding weekend.

The research firm pointed to real yields of approximately 2.90% on Treasury Inflation-Protected Securities as a potential factor supporting demand in the bond market.

It also identified several risks that could affect equity valuations, including increased political partisanship following the US midterm elections and possible renewed escalation in the Middle East.

Yardeni expects these factors, alongside existing risk-averse sentiment, to contribute to continued pressure on market valuation multiples.

Nevertheless, the firm maintained its corporate earnings projections and its expectation that the US economy will avoid recession through 2029.

Its revised S&P 500 target reflects a reduction in valuation expectations rather than a change to its underlying earnings forecast.