Market Commentary

November Market Commentary

by Thornbridge

Tokyo cityscape (for November Market commentary article)

Commentary by Universum Wealth Limited  – A Thornbridge Appointed Representative

Global Market Performance

Global markets rallied in November as cooler-than-expected US and European inflation data boosted investor sentiment. The consensus-beating inflation data supported the view that the current interest rate-hiking cycle in developed markets has peaked. This sparked a rally across equities, bonds and real estate assets.

Equity Indices

In the US, the S&P 500 gained 8.9% while the tech-heavy Nasdaq Composite surged 10.7%. In Europe, the Euro Stoxx 50 advanced 7.9% while the UK’s FTSE 100 rose 1.8%. In Asia, Japan’s Nikkei gained 8.5% while Hong Kong’s Hang Seng eased 0.4%. Chinese equity markets were again under pressure over concerns that continued weakness in the Chinese real estate sector will undermine economic growth.

Bond Indices

The Bloomberg Global Aggregate Bond Index, an indicator for global investment grade bonds, closed 5% higher as government bond yields declined. This rally across all bond maturities clearly signals a shift in sentiment, reflecting the belief that a decisive “Fed pivot” on interest rates is imminent.

Author: Alex Hackett

Alex is a Business Development Manager and a member of the investment funds team and is involved in portfolio construction, regulatory reporting, trade surveillance and monitoring.

Author: Thornbridge