Please see below, the ‘Daily Investment Bulletin’ from Brooks Macdonald which analyses the key factors currently affecting global investment markets. Received today – 30/10/2026
Big Tech spending tests investor patience
Alphabet’s record -12.64% fall reflected growing investor scrutiny of the enormous sums being committed to AI. The company’s results were not uniformly weak, but investors were disappointed by the balance between heavy investment and the near-term returns being generated. Similar concerns weighed on Amazon after the closing bell. Its cloud business continued to grow strongly, but quarterly spending on property and equipment jumped to $77bn, contributing to a roughly -7% fall in the shares in extended trading. The common thread is that expectations for the largest technology companies are exceptionally high.
The ECB keeps December in play
The ECB left rates unchanged at 2.50%, as expected, while signalling it could afford to wait for more data before its next move. Although the accompanying statement struck a slightly dovish tone, President Christine Lagarde indicated that a December rate increase remains the likely next step unless the economic outlook changes materially. Markets continue to price around an 84% chance of a December hike, but reduced expectations for further tightening thereafter, with around 64bps of additional increases priced by next September, 10bps less than before the meeting. Lagarde also announced plans to step down by 7 February, although we do not expect the leadership transition to materially alter the near-term direction of monetary policy.
What does Brooks Macdonald think?
Weakness in the major US indices has been driven disproportionately by a small number of tech companies, while the broader US market and European equities have remained more resilient. That does not signal the end of the AI investment theme, but it does suggest investors are becoming more discerning about whether exceptionally high levels of spending will ultimately translate into stronger earnings. Elsewhere, monetary policy remains an important counterweight. The ECB appears to be approaching the later stages of its tightening cycle, while the Bank of Japan left rates unchanged at 1.25% overnight. Attention now turns back to the inflation outlook, with preliminary October figures from France, Spain, Germany and Italy due today ahead of next week’s euro-area release.
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Alex Kitteringham
30th October 2026