Goldman Sachs: The Bank of England is expected to raise interest rates by 25 basis points in February 2027, bringing the terminal rate to 4.25%.

India’s NIFTY oil and gas index rose 2.21% in pre-market trading.

NI225 has erased its nearly 1% drop in the morning session and is now up 0.4%.

Syz Bank of Switzerland points out that the US low-rated corporate bond market has experienced significant pressure, but the risk has not yet widely spread to high-rated companies. Credit spreads on CCC-rated bonds have widened to approximately 11.3%, and high-yield credit default swap (CDS) spreads have remained above their continuously rising 200-day moving average for the third consecutive week. Meanwhile, there are no clear signs of risk contagion in the investment-grade bond and BBB-rated credit markets. Syz believes that the current US stock market correction is mainly characterized by sector rotation, with corporate earnings expectations and market breadth continuing to provide support. However, credit spreads for some AI infrastructure companies have begun to widen. Meta and Alphabet's free cash flow turned negative in the third quarter, and Meta also supported capital expenditures through equity financing, indicating that AI investment expansion is facing a more stringent test of financing capabilities. Whether credit pressure can spread from low-rated bonds such as CCC to BBB and higher-rated companies will be a key indicator for Syz in assessing market risk. The bank is currently maintaining a neutral equity allocation, but stated that it will reassess this position if credit risk spreads upward along the rating system; if high-yield bond spreads begin to decline, it could create conditions for increasing risk exposure after a market correction.

Oaktree Capital co‑chair Howard Marks said recent setbacks in AI have undercut the market's 'cannot fail' assumption and heightened investor skepticism, a healthy corrective, he added. He noted investor tolerance for tech is declining as core businesses cool despite heavy AI spending; recent results from Alphabet and Amazon have intensified concern that AI investments are eroding the cashflows that fund them. Marks said he has been watching for market bubbles and recalled his 2000 memo warning of the internet bubble.

According to the Iranian news agency IRNA, the Saudi Defense Minister and the Australian Defense Minister spoke by phone to discuss strengthening defense cooperation and coordination. Both sides emphasized their support for regional security and stability and condemned the Houthi attacks on Saudi Arabia.