November 2020

• Global markets surged in November following positive coronavirus vaccine trial results and reduced political uncertainty after the U.S. presidential election.
• Equity markets recorded some of their strongest monthly gains in decades as investors rotated into cyclical and value-oriented sectors.
• Travel, banking, energy and industrial sectors rebounded sharply following vaccine announcements.
• Central banks maintained highly accommodative policies while governments continued supporting economies through fiscal measures.
• Emerging markets performed strongly amid improving global growth expectations and weaker dollar conditions.
• Commodity prices rallied significantly due to optimism surrounding economic reopening prospects.

Asia (ex. Japan)

Asian markets outside Japan advanced strongly during November as successful vaccine trial announcements improved global recovery expectations and supported export-oriented economies. Chinese economic activity continued strengthening, with manufacturing and consumer spending indicators improving steadily.

Technology-focused markets such as Taiwan and South Korea maintained strong momentum due to continued semiconductor demand, while broader cyclical sectors also benefited from improving global growth optimism.

Europe

European equities recorded powerful gains during November as investors reacted enthusiastically to vaccine developments and improving prospects for economic reopening during 2021. Banking, travel and industrial sectors significantly outperformed after months of weakness.

Although lockdown restrictions remained in place across much of Europe, investors increasingly focused on the longer-term recovery outlook supported by fiscal and monetary stimulus measures.

United States

U.S. equities rallied strongly during November following the presidential election and multiple successful vaccine announcements from major pharmaceutical companies. Investors rotated heavily into cyclical sectors expected to benefit from economic reopening.

The Federal Reserve maintained highly accommodative policies and continued large-scale asset purchases, while expectations for additional fiscal stimulus also supported market sentiment.

United Kingdom

UK equities were among the strongest-performing developed markets during November as vaccine optimism and improving Brexit negotiations boosted investor confidence.

Sterling strengthened notably as investors anticipated greater political clarity and stronger economic recovery prospects during 2021. Cyclical sectors such as financials and energy performed particularly well.

Japan

Japanese equities surged during November as exporters and cyclical sectors benefited from improving global growth expectations and vaccine-related optimism.

The Bank of Japan maintained accommodative policies, while improving trade conditions and recovering Asian demand further supported investor confidence.

Emerging Markets

Emerging markets performed exceptionally strongly during November as improving global growth expectations, vaccine optimism and weaker dollar conditions encouraged significant investor inflows.

Commodity exporters benefited from rising energy and metals prices, while Asian economies remained supported by strong technology demand and Chinese recovery momentum.

Commodities

Commodity prices rallied strongly during November as vaccine developments improved expectations for global economic reopening and stronger demand conditions during 2021. Oil prices experienced particularly sharp gains as mobility and travel recovery expectations improved.

Industrial metals surged due to optimism surrounding manufacturing recovery and infrastructure demand, while gold prices weakened modestly as investors reduced safe-haven allocations.