November 2017

• Global markets remained strong in November 2017 as economic growth and corporate earnings continued supporting investor confidence.
• Tax reform expectations drove further gains in U.S. equities.
• Emerging markets and technology sectors continued outperforming.
• Central banks maintained gradual policy normalisation approaches.
• Oil prices reached multi-year highs due to tightening supply conditions.
• Global bond yields remained relatively stable despite improving growth.

Asia (ex. Japan)

Asian markets outside Japan delivered strong gains in November as export growth and technology demand remained exceptionally supportive. Chinese economic conditions stayed stable despite efforts to reduce financial leverage in parts of the economy.

Technology-heavy markets such as South Korea and Taiwan continued outperforming, while India remained supported by strong domestic demand and improving reform confidence.

Europe

European equities advanced modestly in November as economic growth remained strong and investor confidence stayed elevated. Manufacturing and business surveys continued indicating broad-based expansion.

Political risks remained relatively subdued, while the European Central Bank maintained accommodative policy settings despite gradually improving inflation conditions.

United States

U.S. equities reached additional record highs during November as investors became increasingly optimistic regarding corporate tax reform. Technology, financial and industrial sectors continued leading gains.

Economic indicators remained supportive, with strong employment growth and improving business investment. The Federal Reserve continued signalling gradual policy tightening into 2018.

United Kingdom

UK equities were mixed in November as Brexit negotiations continued generating uncertainty. Sterling volatility remained a key influence on market performance.

The Bank of England raised interest rates by 0.25% in its first hike since 2007, citing elevated inflation and tightening labour markets. However, policymakers emphasised that future increases would likely remain gradual.

Japan

Japanese equities continued rallying in November as exporters benefited from strong global demand and stable currency conditions. Corporate earnings remained highly supportive.

The Bank of Japan maintained its ultra-accommodative stance, reinforcing expectations that Japanese monetary policy would remain highly supportive even as other central banks gradually tightened policy.

Emerging Markets

Emerging markets performed strongly again in November as improving global growth and firm commodity prices supported investor inflows. Asian markets continued outperforming due to strong export conditions.

Commodity-exporting nations also benefited from rising oil and metals prices, helping support currencies and equity markets.

Commodities

Commodity prices remained strong in November. Oil prices reached their highest levels in more than two years as OPEC production discipline and improving demand tightened markets.

Industrial metals remained well supported by strong manufacturing activity globally, while gold prices remained relatively stable amid balanced risk sentiment.