Market Price Monitor - 2025 London Market Update

Sep 4, 2026

Uploaded by Putri

Market Price Monitor summarizes November movements across global and UK-focused capital markets, highlighting mixed equity performance, currency shifts in GBP, and relatively flat bond index behavior. It also outlines Solvency II solvency risk-free rates and discount rate changes, including Smith-Wilson extrapolation and credit risk adjustment methodology, plus EIOPA fundamental spread concepts. The report further tracks UK inflation indicators, detailing CPI and RPI declines alongside average earnings changes and supporting ONS attribution notes.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages5

Reading Time13 min

AccessFree to download

Market Price Monitor

Local Equity Markets

Global Equity Markets

Bond/FX Markets

Insurance Monitor

Solvency II Risk Free Rates

Solvency II Fundamental Spreads

UK Inflation Monitor

Market Price Monitor Local Equity Markets • Global equity markets delivered a mixed performance in November. The longest US government shutdown in history delayed the release of key economic data, creating uncertainty around the outlook for the world’s largest economy. At the same time, concerns over stretched tech and AI valuations weighed further on risk sentiment. • Euro Stoxx 50 ended the month up 0.3% . • The FTSE 100 gained 0.4% . Global Equity Markets • The S&P 500 was up 0.2% and the Japanese Topix returned 1.4% . • Conversely, the MSCI Emerging Markets index lost 2 .4% . Bond/FX Markets • Both British government and corporate bond indices ended the month relatively flat. • The British Pound had a positive performance in November, gaining 2.0% and 0.6% against the Japanese Yen and the US Dollar, respectively. Local Equity Markets: 2025 YTD Total Return % 30% 20% 10% 0% -10% 31-Dec 28-Feb 30-Apr 30-Jun 31-Aug 31-Oct FTSE 100 Euro Stoxx 50 FTSE All Share Bonds (Barclays Agg. Indices): 2025 YTD % ∆ 15% 10% 5% 0% -5% 31-Dec 28-Feb 30-Apr 30-Jun 31-Aug 31-Oct £ Govt £ Corp Global Corp 40% 20% 0% -20% ~~ ~~Global~~ ~~Equity~~ ~~Markets~~%~~:~~ ~~2025~~ ~~YTD~~ ~~Total~~ ~~Return~~ ~~ 31-Dec 28-Feb 30-Apr 30-Jun 31-Aug 31-Oct US (S&P) Japan (Topix) Em/Mkts (MSCI) 10% Foreign Currencies in GBP: 2025 YTD % ∆ 31-Dec 28-Feb 30-Apr 30-Jun 31-Aug 31-Oct EUR in GBP USD in GBP JPY in GBP | Total Returns as of November 28, 2025 | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | FTSE 100 | | FTSE All
Share | Euro
Stoxx 50 | US (S&P) | Japan
(Topix) | Em/Mkts
(MSCI) | £ Govt | £ Corp | Global
Corp | EUR in
GBP | USD in
GBP | JPY in
GBP | | 1 Month | 0.4% | 0.4% | 0.3% | 0.2% | 1.4% | -2.4% | 0.1% | 0.1% | 0.5% | -0.1% | -0.6% | -2.0% | | 3 Month | 6.4% | 6.0% | 6.3% | 6.3% | 10.9% | 9.0% | 3.7% | 3.2% | 1.7% | 1.3% | 2.0% | -3.9% | | 1 Year | 21.5% | 20.0% | 21.7% | 15.0% | 29.2% | 30.3% | 2.1% | 6.1% | 7.8% | 5.5% | -3.8% | -7.7% | | YTD | 23.0% | 21.4% | 19.4% | 17.8% | 24.2% | 30.4% | 4.8% | 6.7% | 10.0% | 6.0% | -5.4% | -4.7% | Insurance Monitor Solvency II Risk Free Rates • GBP risk-free rates rose at most terms, except for the 1-year rate which fell by 6 basis points. • The 30, 20 and 10-year GBP risk-free rates all rose by 3 basis points. • EUR risk-free rates rose at all tenors in November, with the moves more pronounced at the long-end of the curve. • The 20 and 30-year EUR risk-free rates rose by 17 and 20 basis points, respectively. The Solvency II risk-free discount rates are calculated independently based on applying the SmithWilson Extrapolation to swap rates sourced from Bloomberg and applying the Credit Risk Adjustment as defined in the Technical Specs. For the official published curves please refer to EIOPA and PRA websites. Solvency II Fundamental Spreads • There were no material changes since the start of the year. EIOPA fundamental spreads show the credit spread corresponding to the risk of default or downgrading of an asset. This is shown here across financial and nonfinancial assets, credit quality steps 0-3 and durations of 1-30 years. The data is provided by EIOPA. Fundamental spread = maximum (probability of default + cost of downgrade; 35% of long-term average spread) . For fundamental spreads on other tenors please refer to the EIOPA website. 6.00% ~~ Solvency II Discount Rates~~-~~GBP ~~ 4.00% 2.00% ~~ ~~ 0.00% ~~ ~~ 1 4 7 10 13 16 19 22 25 28 31 34 37 40 GBP-Nov 28, 2025 GBP-Q3 2025 ~~ ~~ GBP-Q2 2025 GBP-Q1 2025 ~~ ~~ GBP-Q4 2024 4.00% 3.00% 2.00% 1.00% 0.00% Solvency II Discount Rates-EUR 1 4 7 10 13 16 19 22 25 28 31 34 37 40 EUR-Nov 28, 2025 EUR-Q3 2025 ~~ ~~ EUR-Q2 2025 EUR-Q1 2025 ~~ ~~ EUR-Q4 2024 GBP Financial Fundamental Spreads 1.50% ~~ ~~ AAA AA A BBB 5 Yr-Oct 31,

FAQs

What drove uncertainty in global equity markets during November?

The longest US government shutdown delayed key economic data releases, increasing uncertainty. Concerns about stretched tech and AI valuations also weighed on risk sentiment.

How are Solvency II risk-free discount rates calculated in the report?

They are calculated independently by applying Smith-Wilson Extrapolation to Bloomberg swap rates and then applying the credit risk adjustment defined in the technical specifications.

What happened to UK inflation measures in October?

UK CPI fell by 20 basis points to 3.6%, and UK RPI declined by 20 basis points to 4.3% according to the ONS.

Sep 4, 2026

Uploaded by Putri