November 2023

• Global markets rallied strongly in November as inflation continued moderating and investors increasingly anticipated interest rate cuts during 2024.
• Bond yields declined sharply across major developed economies, supporting equity market gains.
• Technology and growth sectors significantly outperformed amid improving sentiment toward artificial intelligence and lower yields.
• Central banks signalled that policy tightening cycles were likely nearing completion.
• Emerging markets benefited from weaker U.S. dollar conditions and improving global risk appetite.
• Commodity prices delivered mixed performance amid easing inflation and stable energy markets.

Asia (ex. Japan)

Asian markets outside Japan advanced during November as declining U.S. bond yields and improving global sentiment supported investor confidence across the region.

Technology-focused markets such as Taiwan and South Korea benefited strongly from continued semiconductor and artificial intelligence-related demand, while Chinese markets remained more subdued due to ongoing property sector concerns.

Europe

European equities rallied during November as easing inflation pressures and declining bond yields improved investor sentiment across financial and cyclical sectors.

Energy prices remained relatively stable, while investors increasingly anticipated that the European Central Bank could eventually begin easing monetary policy during 2024.

United States

U.S. equities delivered strong gains during November as softer inflation data and declining Treasury yields boosted optimism that the Federal Reserve had completed its tightening cycle.

Technology and growth stocks significantly outperformed, led by continued enthusiasm surrounding artificial intelligence and resilient corporate earnings.

United Kingdom

UK equities advanced during November as declining bond yields and easing inflation data improved investor confidence.

Markets responded positively to expectations that the Bank of England could pause further interest rate increases as economic activity continued slowing gradually.

Japan

Japanese equities performed strongly during November as improving global sentiment and continued corporate reform efforts attracted sustained investor inflows.

Exporters also benefited from relatively weak yen conditions despite growing speculation regarding eventual Bank of Japan policy adjustments.

Emerging Markets

Emerging markets delivered positive performance during November as weaker dollar conditions, declining global yields and improving risk appetite encouraged capital inflows.

Technology-oriented Asian markets particularly benefited from semiconductor demand and improving financial conditions globally.

Commodities

Commodity prices delivered mixed performance during November. Oil prices weakened somewhat as concerns regarding slowing global demand offset supply management efforts by major producers.

Industrial metals stabilised amid improving market sentiment, while gold prices strengthened due to falling bond yields and expectations for eventual central bank easing.