Relief in Gaza as political crises rattle markets and send gold to new heights

It’s been a tumultuous week for markets, as political crises in seemingly all corners of the globe tested investors’ nerves.

As the US government shutdown rolled into its second week, France was shaken to its core by the shock resignation of prime minister Sebastien Lecornu less than a month into his term. French stocks and the euro (E7=F) plunged on the back of the news.

But by the end of the week he was back, reappointed by embattled president Emmanuel Macron and tasked with forming a new cabinet and presenting a budget next week.

Meanwhile, in Japan, stocks shot up (^N225) after pro-stimulus candidate Sanae Takaichi was elected as leader of the governing Liberal Democratic party. Takaichi, who is expected to become Japan’s first female prime minister soon, is tipped to push for higher government spending and looser monetary policy.

The week ended with some relief in the Middle East, as Israeli government officials approved the first phase of US president Donald Trump’s plan to end the war in Gaza.

Under the agreement, Israel’s military will partially withdraw from Gaza, humanitarian aid will be given full access and the Israeli hostages held by Hamas will be released in exchange for 2,000 Palestinian prisoners. The second part of the deal is bound to prove more tricky, however, with its requirements including a full withdrawal of Israeli forces from the territory and the complete disarmament of Hamas.

All of this was good for gold (GC=F) of course, sending the precious metal north of $4,000 for the first time in history and prompting forecasts of a rally going all the way to $5,000 – a level that would have been deemed unthinkable a year ago.

Let’s take a closer look at what’s been on investors’ minds this week.

Central bank governor Andrew Bailey signalled a notable shift in tone on cryptocurrencies this week. · WPA Pool via Getty Images

Bank of England warns of AI-driven stock market bubble

There may be trouble ahead. Threadneedle Street believes valuations in US stock markets are similar to those seen near the peak of the dotcom bubble that brought markets tumbling down in the late 1990s.

In its quarterly update, the BoE’s Financial Policy Committee said: “On a number of measures, equity market valuations appear stretched, particularly for technology companies focused on artificial intelligence. This, when combined with increasing concentration within market indices, leaves equity markets particularly exposed should expectations around the impact of AI become less optimistic.”

Shawbrook plans London IPO in ‘vote of confidence’ for UK market

The digital lender announced plans to float on the London Stock Exchange, in the latest listing news to offer a boost to the struggling UK market. Shawbrook said on Monday it was considering an IPO which would value it at as much as £2bn.

It came after The Beauty Tech Group (TBTG.L) made its debut on the London market and tinned-tuna producer Princes Group said it was considering listing in London. According to an analysis by AJ Bell, an investor who bought into every one of the 12 UK IPOs so far in 2025 would have made an average return of 10.9%.

Is the house-buying process too complicated? How you voted

The government plans to consult on proposals aimed at speeding up the often lengthy and frustrating process of buying a property. They include forcing sellers and estate agents to provide crucial information about a property up front and preventing either party from backing out at a late stage of the process.

Housing secretary Steve Reed said: “Our reforms will fix the broken system so hardworking people can focus on the next chapter of their lives.”

We asked you whether such changes are necessary.

Why the Bank of England’s new stance on stablecoins is a big deal

Central bank governor Andrew Bailey signalled a notable shift in tone on cryptocurrencies this week, suggesting that digital assets pegged to real-world currencies could play a bigger role in the UK’s financial system than previously thought.

Speaking to the Financial Times, Bailey said it would be “wrong to be against stablecoins as a matter of principle”, adding that they could drive innovation in payments both domestically and internationally. He also noted that the financial system “does not have to be organised” around the current heavy reliance on commercial bank lending.

But he cautioned that key questions remain, including whether stablecoins must be backed entirely by risk-free assets in order to be considered truly stable.

UK investors pull record amount from equity funds

The exodus of cash came in the third quarter, as investors “ran scared of sky-high stock markets”, according to global funds network Calastone.

They withdrew £1.2bn of their equity-fund holdings in September, taking the total outflows for the quarter to £3.64bn, the worst of any three-month run on Calastone’s 11-year record of the data.

“It is really unusual to see markets reaching record highs while investors are moving decisively for the exits across such a broad range of funds,” said Edward Glyn, head of global markets at Calastone.

With no end to the rally in sight, and many analysts forecasting a price of $5,000, gold is a tempting bet. · Justin Sullivan via Getty Images

Retail investors are piling into gold to shield themselves from markets rife with uncertainty. The ultimate safe-haven investment has seen its price skyrocket, doubling in the last two years and bursting through the $4,000 level for the first time this week. With no end to the rally in sight, and many analysts forecasting a price of $5,000, it’s a tempting bet. We took a look at the reasons behind the remarkable rise and pose the question: Should you invest in gold?

Instagram has become a commerce hub as much as a social forum in the 15 years since it burst onto the scene, now hosting some 25 million businesses. One in 20 social media users in the UK say they shop directly through Instagram. But this is just the tip of the iceberg, as many people’s spending elsewhere is heavily influenced by what they see on the platform. This doesn’t come without its risks: How Instagram affects our spending

The price of chocolate for consumers is at a nearly 2-year high, according to Wells Fargo, and it’s likely to keep rising. Hershey (HSY), Lindt (CHLSY), and Nestlé (NESN.SW) are some of the companies that have recently announced price hikes, following wild swings in cocoa wholesale markets. Watch this to find out why chocolate prices will scare you this Halloween

Find more personal finance gems here.

Economic data: Employment and wages data on Tuesday morning will provide a window into the state of the UK’s economy before attention turns stateside on Wednesday for a slew of inflation and mortgage reports.

Thursday is the big one for UK data, as economic growth and industrial production take the spotlight. Analysts forecast a slight uptick in monthly GDP expansion in August after July’s flatline. US jobless claims will also be in focus on Thursday.

The week will end with euro area inflation figures and US manufacturing and production data.

Earnings reports: A packed week of earnings will provide insights into the state of the global economy, as major companies across various sectors and geographies prepare to report.

In the US, JPMorgan Chase (JPM), the country’s largest bank by assets and market capitalisation, will lead the financial sector’s quarterly updates when it reports on Tuesday.

In Asia, Taiwan Semiconductor Manufacturing Company’s (2330.TW, TSM) results will serve as a barometer for the strength of the AI-driven chip boom, as questions mount over whether the rally has run ahead of fundamentals. In India, investor focus is on Infosys, which will report earnings days after unveiling a £1.75bn share buyback that has sparked renewed interest in the stock.

In Europe, all eyes are on ASML (ASML), the continent’s largest and most valuable tech group, as it updates investors on demand for its advanced chipmaking tools amid a string of target price upgrades by analysts.

Meanwhile, in the UK, Bellway’s (BWY.L) full-year results will be closely watched not just for past performance, but for forward guidance and further clarity on the housebuilder’s capital return strategy through to June 2026.

Let’s take a closer look: Stocks to watch next week

Reality television celebrity specials were once-upon-a-time mocked as a last-chance saloon for struggling B-listers. All that has changed, as a glance at the line-up for the first celeb edition of the hugely popular Traitors phenomenon proves. Just two epiodes in, national treasures such as Jonathan Ross, Stephen Fry and Alan Carr are already providing bucketloads of entertainment as they connive and back-stab their way to a cash prize up to £100,000 for their chosen charity.

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