Week in Review: US jobs beat forecasts, BoE hikes to 4%, tech stocks slide

It was a busy week for traders. US data showed a labour market far stronger than expected, the Bank of England (BoE) raised its main rate to 4%, and Canada and New Zealand reported softer jobs figures. Meanwhile, the US midterm results, fears about AI spending and mixed news on Iran moved stocks, the dollar and oil.

US jobs data surprises on the upside

The US economy created 165,000 jobs in October, well above what economists had pencilled in, and the unemployment rate eased to 4.1% from 4.2%. Earlier in the week, the JOLTS survey showed 7.523 million job openings in September, against an estimate of 7.19 million, with August revised up to 7.2 million.

Both reports pushed US Treasuries lower. Traders added positions on a possible rate hike by the US Federal Reserve (Fed) in December, since a tight labour market can keep pressure on inflation.

1. 1Strong US dataPayrolls and job openings beat
2. 2Treasuries slipBond prices fell after releases
3. 3Fed hike betsDecember hike talk revived

Bank of England raises rates and keeps the door open

On 5 November 2026 the BoE lifted Bank Rate, the interest rate it sets for the UK, by 0.25 percentage points to 4%. Eight members backed the move and one wanted a larger 0.5 point increase.

The forecast that drew most attention was on prices: the Bank now expects UK inflation to climb close to 5% by mid-2027. It also hinted that more tightening could come, and traders increased their positions on a further hike next month. That made the message firmer than the hike itself.

Softer jobs in Canada and New Zealand

Canada's unemployment rate rose to 6.7% in October, compared with 6.5% expected and in the prior month. Employment slipped slightly, while forecasts had pointed to a gain.

In New Zealand, the jobless rate reached 5.7% in the third quarter, above the 5.5% forecast, and employment fell 0.1% instead of rising 0.4%. Markets removed part of the rate hike they had expected from the Reserve Bank of New Zealand in December.

Read alsoWeek Ahead: US inflation, UK GDP and US producer prices

Stocks, the dollar and oil swing on politics and AI

Worries about AI spending and possible data-center regulation shook global stock markets. The S&P 500 suffered its sharpest fall in more than a year before tech shares bounced, and South Korean chip stocks dropped about 10% in pre-market trading. Early US midterm counts pointed to strong Democratic gains, and the dollar posted its weakest day in a month as the Swiss franc and yen gained.

Oil was pulled in two directions. Reports said US Central Command had prepared a possible strike on Iran, with WTI near $96.93. Later, comments from Iran's president suggesting both sides were open to talks cut oil by about $5 to around $97.83, its largest drop in over three months, before prices steadied. Gold posted its biggest rise in two months, but no deal has been confirmed.

What comes next

Rate expectations for the Fed and the BoE, the New Zealand election on Saturday and any news on Iran remain in focus. Our Week Ahead article, with the key dates and forecasts for next week, is published on Sunday.

Sources: Optencis Newsroom.