November 2019

• Global markets continued advancing in November as improving trade optimism and supportive central bank policies boosted investor confidence.
• U.S. equities reached further record highs, led by technology and consumer sectors.
• European and Asian markets benefited from stronger risk appetite and stabilising economic conditions.
• Emerging markets advanced alongside improving global trade sentiment and stable financial conditions.
• Bond yields remained relatively stable as recession fears eased further.
• Commodity prices strengthened modestly due to improving global growth expectations.

Asia (ex. Japan)

Asian markets outside Japan advanced strongly during November as optimism surrounding a potential “Phase One” trade agreement between the United States and China supported investor sentiment. Chinese economic data remained relatively soft but showed tentative signs of stabilisation following months of policy support.

Technology-heavy markets such as Taiwan and South Korea continued outperforming due to improving semiconductor demand and stronger export expectations. India also gained as accommodative domestic monetary policy supported economic activity and market confidence.

Europe

European equities delivered positive returns during November as reduced trade tensions and accommodative monetary policy supported investor appetite for risk assets. Manufacturing activity remained weak overall, though signs of stabilisation emerged in several economies.

The European Central Bank maintained highly supportive policies under new President Christine Lagarde, reinforcing expectations that monetary accommodation would continue for an extended period.

United States

U.S. equities reached additional record highs during November as trade negotiations with China appeared to progress and economic conditions remained relatively resilient. Technology and consumer-related sectors continued leading gains.

Employment growth remained solid, while consumer spending continued supporting the broader economy despite ongoing weakness in manufacturing and business investment. The Federal Reserve maintained interest rates unchanged following its earlier easing cycle.

United Kingdom

UK equities advanced modestly during November as investors anticipated the upcoming general election and monitored continued Brexit developments. Sterling remained volatile due to changing political expectations.

Economic growth conditions remained relatively subdued amid prolonged uncertainty, though expectations for greater political clarity following the election supported investor sentiment late in the month.

Japan

Japanese equities continued rising during November as improving global trade sentiment and stable yen conditions supported exporters and industrial sectors.

The Bank of Japan maintained its ultra-accommodative monetary policy stance while monitoring the effects of slower global growth and domestic consumption following the recent sales tax increase.

Emerging Markets

Emerging markets performed strongly during November as improving trade negotiations and lower global interest rates encouraged capital inflows into higher-risk assets.

Asian emerging markets benefited most from improving export expectations and stronger technology demand, while commodity-exporting economies also gained from improving growth optimism.

Commodities

Commodity prices strengthened modestly during November as improving trade sentiment supported demand expectations. Oil prices remained relatively stable amid balanced supply conditions and cautious optimism regarding global growth.

Industrial metals advanced due to stronger manufacturing sentiment and trade optimism, while gold prices weakened modestly as safe-haven demand declined.