November 2021

• Global markets experienced increased volatility in November as inflation concerns intensified and the emergence of the Omicron coronavirus variant unsettled investors late in the month.
• Major central banks adopted increasingly hawkish tones in response to persistent inflation pressures.
• Technology stocks remained relatively resilient while cyclical sectors weakened toward month-end.
• Energy markets experienced sharp swings due to concerns regarding future mobility restrictions.
• Emerging markets remained under pressure from rising U.S. dollar strength and tightening global financial conditions.
• Supply chain disruptions and labour shortages continued contributing to elevated inflation globally.

Asia (ex. Japan)

Asian markets outside Japan delivered mixed performance during November as investors weighed slowing Chinese growth and regulatory uncertainty against continued strength in exports and manufacturing activity.

Late in the month, concerns surrounding the newly identified Omicron variant increased volatility across regional markets, particularly within travel and consumer sectors. Technology exporters such as Taiwan and South Korea remained relatively supported by strong semiconductor demand.

Europe

European equities experienced increased volatility during November as inflation pressures intensified and several countries reintroduced restrictions due to rising coronavirus cases. Energy costs and supply chain disruptions remained key concerns for businesses and consumers.

Markets weakened sharply late in the month following the emergence of the Omicron variant, which raised fears of renewed travel restrictions and slower economic recovery.

United States

U.S. equities delivered mixed performance during November as strong corporate earnings and consumer spending were offset by rising inflation concerns and expectations for tighter Federal Reserve policy.

Technology companies remained relatively resilient, though broader markets weakened late in the month after the emergence of the Omicron variant triggered renewed uncertainty regarding global reopening trends.

United Kingdom

UK equities experienced volatility during November as investors focused on rising inflation, potential Bank of England interest rate increases and the spread of the Omicron variant.

Travel and hospitality sectors weakened significantly late in the month following renewed concerns regarding international mobility restrictions.

Japan

Japanese equities delivered mixed performance during November as exporters remained supported by strong external demand, though global market volatility and concerns regarding Omicron limited broader gains.

The weaker yen continued benefiting manufacturing sectors, while policymakers prepared additional fiscal stimulus measures aimed at supporting domestic recovery.

Emerging Markets

Emerging markets weakened during November as rising U.S. dollar strength, inflation concerns and tightening monetary policies reduced investor appetite for risk assets.

Chinese growth concerns and uncertainty surrounding the Omicron variant added further pressure across several emerging economies.

Commodities

Commodity prices experienced significant volatility during November. Oil prices initially remained elevated due to strong demand and limited supply, though prices fell sharply late in the month following fears that the Omicron variant could reduce global mobility and energy consumption.

Industrial metals weakened amid slowing Chinese growth concerns, while gold prices strengthened modestly due to rising inflation and renewed safe-haven demand.