November 2018

• Global markets remained volatile in November as investors focused on slowing global growth and trade negotiations.
• Oil prices collapsed sharply due to oversupply concerns.
• U.S. equities recovered modestly after October’s correction.
• European and Asian markets remained relatively weak.
• Emerging markets stabilised somewhat as dollar strength eased.
• Central banks continued gradual tightening despite rising market concerns.

Asia (ex. Japan)

Asian markets outside Japan remained weak during November as slowing Chinese growth and trade tensions continued affecting sentiment.

Chinese authorities introduced additional support measures to stabilise domestic demand and financial markets.

Europe

European equities remained subdued due to weaker economic data and continued political uncertainty surrounding Brexit and Italy’s budget dispute.

Export-oriented sectors continued facing pressure from softer global trade conditions.

United States

U.S. equities recovered modestly during November as investors anticipated progress in trade negotiations and remained supported by relatively strong economic conditions.

However, concerns regarding slowing earnings growth and tighter financial conditions persisted.

United Kingdom

UK equities remained volatile during November due to ongoing Brexit negotiations and political uncertainty surrounding the proposed withdrawal agreement.

Sterling experienced sharp fluctuations in response to political developments.

Japan

Japanese equities remained weak during November as slowing global trade and softer export demand weighed on investor sentiment.

Accommodative Bank of Japan policy continued supporting broader financial conditions despite weaker equity performance.

Emerging Markets

Emerging markets stabilised modestly during November as U.S. dollar strength eased and investors anticipated improved trade negotiations.

However, growth concerns and lower commodity prices continued limiting broader recovery momentum.

Commodities

Commodity prices weakened sharply during November. Oil prices collapsed due to oversupply concerns and softer demand expectations.

Industrial metals remained under pressure, while gold prices strengthened modestly as volatility increased.