US consumer sentiment weakens amid high prices and falling markets
US consumer sentiment fell in November to one of the lowest levels on record as Americans grow gloomier about their personal financial outlook.
The University of Michigan’s index of consumer morale has dropped to 51 for November, down from 53.6 in October.
The recent stock market falls appear to have dented sentiment among rich Americans, while other citizens are suffering from high prices in the shops.
Surveys of Consumers director Joanne Hsu explains:
After the federal shutdown ended, sentiment lifted slightly from its mid-month reading. However, consumers remain frustrated about the persistence of high prices and weakening incomes.
This month, current personal finances and buying conditions for durables both plunged more than 10%, whereas expectations for the future improved modestly.
By the end of the month, sentiment for consumers with the largest stock holdings lost the gains seen at the preliminary reading. This group’s sentiment dropped about 2 index points from October, likely a consequence of the stock market declines seen over the past two weeks.
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Time to recap…
US consumer sentiment fell in November to one of the lowest levels on record as Americans’ views of their personal finances deteriorated.
The University of Michigan reported that consumers are frustrated about the persistence of high prices and weakening incomes, while wealthier Americans became less optimistic as stock markets fell this month.
Wall Street has rallied today, though, after a top Federal Reserve official suggested he could back a December rate cut.
New York Fed president John Williams signalled that he might back a quarter-point cut at the US central bank’s next meeting, saying there was “room for further adjustment” in borrowing costs “in the near term”.
That has pushed the S&P 500 up by 1.5% today, reversing yesterday’s surprise sell-off.
Bitcoin earlier today hit its lowest level since April, but has since recovered to $84,326, down 3.3% today.
In Europe, the FTSE 100 hit a one-month low before rebounding.
There’s no relief for borrowers in Paraguay today.
Paraguay’s central bank held its benchmark interest rate at 6%, and reaffirmed its commitment to price stability.
Interestingly, its monetary policy committee cited recent falling expectations of a cut to US interest rates in December, saying:
In the United States, the Federal Reserve reduces the target range for the federal funds rate at the end of October, as anticipated by the markets. However, in the last weeks, the the probability of a new cut in December has reduced.
ShareAstraZeneca announces $2bn Maryland investment in US manufacturing push
Some late-breaking pharmaceuticals news.
Anglo-Swedish drugmaker AstraZeneca is to invest $2bn to expand its manufacturing footprint in Maryland. The investment is part of its previously announced $50bn plan to expand manufacturing and research capabilities in the US by 2030.
It will help expand its biologics manufacturing facility in Frederick and construct a new state-of-the-art facility in Gaithersburg for the development and clinical supply of drugs to be used in trials.
This investment marks the fourth in AstraZeneca’s larger expansion plan, and will support 2,600 jobs across the two sites in Maryland, including the creation of 300 highly skilled jobs.
ShareEuropean stocks post biggest weekly drop since July
Earlier today, European stock markets recorded their worst week in three months.
The pan-European STOXX 600 index fell 0.3% to 562.1 points today, after hitting its lowest since late September earlier in the session. It also posted its biggest weekly drop since late July.
ShareWall Street rallies on hopes of December rate cut
Hopes that the US central bank could cut interest rates as soon as next month have pushed shares higher on Wall Street today.
New York Fed president John Williams, a voting member of the Federal Open Market Committee (which sets interest rates), said the central bank can still cut rates “in the near term” without putting its inflation goal at risk.
Williams said:
“I view monetary policy as being modestly restrictive…Therefore, I still see room for a further adjustment in the near term to the target range for the federal funds rate to move the stance of policy closer to the range of neutral.”
Reuters reports that a December rate cut is now seen as a 70% change, up from around 37% chance seen earlier in the day, according to the CME FedWatch Tool.
However, Boston Fed President Susan Collins, has told CNBC that policy was “in the right place”, which indicates scepticism about the need for another rate cut.
The US S&P 500 share index is now up over 1%, or 70 points, at 6,609 points.
ShareUS October inflation report cancelled
Disappointingly, we may never find out exactly how fast prices rose in US shops last month.
The Bureau of Labor Statistics has canceled the release of October’s consumer price report because the government shutdown prevented their staff from collecting data.
The BLS said in a statement:
BLS is unable to retroactively collect these data. For a few indexes, BLS uses nonsurvey data sources instead of survey data to make the index calculations.
BLS is able to retroactively acquire most of the nonsurvey data for October. Where possible, BLS will publish October 2025 values for these series with the release of November 2025 data.
Updated at 13.56 EST
Stocks have turned higher on Wall Street too, where the Dow Jones industrial average is up 1%.
The Dow has gained 469 points to 46,221 points, while the tech-focused Nasdaq is up 0.6%.
After a bruising session, London’s blue-chip share index has closed slightly higher tonight.
The FTSE 100 share index has closed 12 points higher at 9,539 points, a gain of 0.13% as it recovered from this morning’s one-month low.
ShareUS consumer sentiment weakens amid high prices and falling markets
US consumer sentiment fell in November to one of the lowest levels on record as Americans grow gloomier about their personal financial outlook.
The University of Michigan’s index of consumer morale has dropped to 51 for November, down from 53.6 in October.
The recent stock market falls appear to have dented sentiment among rich Americans, while other citizens are suffering from high prices in the shops.
Surveys of Consumers director Joanne Hsu explains:
After the federal shutdown ended, sentiment lifted slightly from its mid-month reading. However, consumers remain frustrated about the persistence of high prices and weakening incomes.
This month, current personal finances and buying conditions for durables both plunged more than 10%, whereas expectations for the future improved modestly.
By the end of the month, sentiment for consumers with the largest stock holdings lost the gains seen at the preliminary reading. This group’s sentiment dropped about 2 index points from October, likely a consequence of the stock market declines seen over the past two weeks.
The UK stock market has slipped back in recent days since hitting record highs last week, amid the wider market sell-off.
Emma Wall, chief investment strategist at Hargreaves Lansdown, says:
After a brief respite yesterday morning, following AI-juggernaut Nvidia’s expectation busting results, global markets are sliding once again.
The tech giant posted third-quarter results overnight on Wednesday and the revenue and earnings beat saw the stock rally 4% on opening, dragging not just the NASDAQ up, but setting a risk-on stance in global stock markets.
The euphoria proved short-lived, and today’s markets are a sea of red. Asian markets closed down around 2% on average, and Europe and UK stocks are on track for worst week since tariff tantrum in April.
The FTSE 100 is flat at the time of writing trading at 9,517 but is down near 400 points from the highs of last week.
Updated at 13.56 EST
Babcock optimistic about Type 31 warship export orders
Jasper Jolly
The boss of FTSE 100 defence company Babcock has said that the prospects of export orders for Type 31 warships are “looking very positive”, in a possible boost for Scotland shipyard workers.
Babcock International is building Type 31 frigates for the Royal Navy, but it is in talks with Sweden, Denmark and Indonesia about possible orders, to be built in Scotland.
David Lockwood, Babcock’s chief executive, told the Guardian: “If you look at UK navy orders, we’re in a very good position,” while potential exports to European and Asian markets are “looking very positive”.
Export orders for the Type 31 would likely secure employment at Babcock’s shipyard in Rosyth, near Edinburgh, for several more years. Lockwood said that Rosyth was “secure as long as it’s competitive”, but added that it is “one of the best invested yards in Europe”.
Babcock on Friday reported a 5% increase in revenues to £2.5bn, and beat forecasts for cash generation – a crucial measure for defence companies running long contracts.
The company’s share price initially dropped as much as 6% on Friday, but eventually recovered to rise by 2%. Lockwood said:
There’s no shiny bauble, but everything is moving in the right direction. As a business now we’re just firing properly.
Lockwood also said that re-opening of a submarine repair dock in Devonport should increase availability of nuclear submarines to the Royal Navy. That would be a welcome prospect for the government, after years of maintenance problems that have forced ever-longer tours on submariners.
He said:
I certainly think it will increase availability of submarines. There’s no doubt we can refit faster now with better facilities.
ShareWall Street opens higher
Wall Street’s main indexes have just opened higher, as a measure of calm returns to the New York stock market.
After yesterday’s rout, trading looks to be calmer today (so far!).
The Dow Jones Industrial Average rose 56.4 points, or 0.12%, to 45,808.65 at the open. The S&P 500 gained 0.26% and the tech-focused Nasdaq Composite picked up 0.38%.