November 2022

• Global markets rallied strongly in November as signs of moderating inflation raised hopes that central banks could slow the pace of monetary tightening.
• U.S. inflation data came in lower than expected, boosting investor confidence and improving risk appetite globally.
• Bond yields declined sharply during the month as expectations for future interest rate increases moderated.
• Technology and growth stocks rebounded strongly following months of heavy declines.
• China began signalling gradual easing of some COVID-related restrictions, supporting Asian markets and commodity demand expectations.
• Commodity prices delivered mixed performance amid shifting growth and reopening expectations.

Asia (ex. Japan)

Asian markets outside Japan advanced strongly during November as investors responded positively to signs that Chinese authorities could begin relaxing strict zero-COVID policies.

Technology-heavy markets such as Taiwan and South Korea benefited from improving global risk appetite and declining bond yields, while hopes for stronger Chinese demand supported broader regional sentiment.

Europe

European equities rallied during November as easing inflation concerns and declining bond yields improved investor sentiment despite ongoing economic slowdown risks.

Energy prices moderated somewhat from earlier peaks, helping reduce fears of severe winter shortages and supporting consumer and industrial sectors across the region.

United States

U.S. equities delivered strong gains during November after inflation data showed early signs of moderation, increasing optimism that the Federal Reserve could slow the pace of future interest rate increases.

Technology and growth stocks rebounded sharply as Treasury yields declined, while investors increasingly focused on the possibility of inflation peaking after months of aggressive tightening.

United Kingdom

UK equities advanced during November as global risk appetite improved and political stability returned following the volatility experienced earlier in the autumn.

The government delivered a more fiscally conservative budget, helping stabilise financial markets while investors monitored ongoing inflation and recession risks.

Japan

Japanese equities performed positively during November as improving global sentiment and declining U.S. bond yields supported exporters and technology-related sectors.

The weaker yen continued benefiting manufacturers and international earnings, while the Bank of Japan maintained accommodative monetary policies.

Emerging Markets

Emerging markets performed strongly during November as weaker dollar conditions, declining U.S. yields and improving Chinese reopening expectations boosted investor sentiment.

Asian markets particularly benefited from optimism surrounding China’s economic reopening and stronger regional trade expectations.

Commodities

Commodity prices delivered mixed results during November. Industrial metals rebounded strongly due to optimism surrounding Chinese reopening prospects and improving global risk sentiment.

Oil prices remained volatile as investors balanced weaker global growth expectations against the potential recovery in Chinese demand, while gold prices rallied sharply due to declining bond yields and weaker dollar conditions.