Take Two: Stocks volatile as US shutdown ends; Eurozone growth edges up in Q3

What do you need to know?

Global stocks endured further volatility last week, spiking as investors welcomed the end of the longest US government shutdown in history, but falling back on renewed share valuation concerns. President Donald Trump signed off on a new short-term funding bill on Wednesday, ending the 43-day impasse. The Dow Jones and UK’s FTSE 100 each hit record highs before ending the week to Thursday’s close up 1% and 2% respectively. Elsewhere the Nasdaq was down 1% and S&P 500 index was flat. However, Europe’s Stoxx 600 index was up 3% over the week.*

*Source: FactSet, in US dollar terms. Data as of 13 November 2025

Around the world

The Eurozone economy expanded by 0.2% in the third quarter (Q3), according to a second estimate, showing a slight acceleration from the 0.1% pace seen in Q2. The figures came in line with the initial flash estimate. Elsewhere, UK economic growth slowed more than expected to 0.1% during Q3, a marked fall from Q2’s 0.3% expansion. The slowdown was partly driven by a fall in production output following a cyberattack on a large vehicle manufacturer.

Figure in focus: $1trn

Investment in electricity generation has risen almost 70% since 2015 to reach $1trn per year, but annual grid spending has risen at less than half the pace to $400bn, according to the International Energy Agency (IEA). Presently, electricity accounts for 21% of world energy consumption but is the key source for sectors which account for over 40% of the global economy and is the main energy source for most households, the IEA’s World Energy Outlook said. The report came as the United Nations Climate Change Conference COP30 began in Belém, Brazil.

Words of Wisdom

Kilts: The Scottish government has announced it plans to issue its first bonds in 2026/2027. Dubbed kilts – in reference to both the traditional Scottish garment and UK government gilts - the issuance will be the first in a £1.5bn bond programme which aims to raise money to fund key infrastructure projects. Credit ratings agency S&P Global gave the government an AA rating while Moody’s rated it as Aa3, each matching the UK’s sovereign rating, but warned that moves towards Scottish independence could put downward pressure on the rating. Issuance will depend on the outcome of parliamentary elections, market conditions and borrowing requirements, the government said.

What’s coming up?

On Monday, Canada reports its latest inflation update, and Japan issues a preliminary estimate for Q3 economic growth. The Reserve Bank of Australia publishes the minutes of its latest monetary policy meeting on Tuesday, while the Federal Reserve follows with its own minutes on Wednesday; in October it lowered interest rates by 25 basis points to 3.75%-4.0%. Wednesday also sees the Eurozone and UK issue their respective inflation numbers. On Friday, Japan follows with its own inflation data while flash Purchasing Managers’ Indices covering Japan, the Eurozone, UK and US are also published.

Read more insights and views at the AXA IM Investment Institute