The US election was the main protagonist in November, with Donald Trump’s decisive victory driving global equities higher, led by his home market. US equities rose to another all-time high, bouncing back from their October losses, as investors bet that some of the new administration’s policies, such as corporate tax cuts and lighter regulation, could boost domestic growth. However, there were pockets of weakness in other markets at risk of proposed US tariffs, including China and Mexico, which sank over the month, as did European car manufacturers. France was another laggard amid concerns about the viability of the government’s proposed budget.
Geopolitics was in focus too, with Ukraine launching US long range missiles into Russia, which responded by loosening the terms of use for its nuclear doctrine. In the Middle East, a ceasefire agreement was reached between Israel and Hezbollah. At the sector level, consumer discretionary, financials and tech all performed strongly, however more defensive areas such as materials and utilities lagged. Healthcare stocks were hit by the nomination of vaccine sceptic Robert Kennedy Jr to head the US health department.
| Indices (total return in local currency) | |
|---|---|
| S&P 500 | 5.8% |
| Nasdaq Composite | 6.3% |
| MSCI ACWI | 3.7% |
| Nikkei 225 | -2.2% |
| EuroStoxx 600 | 1.0% |
| FTSE 100 | 2.6% |
| Hang Seng Index | 4.2% |
| SSE Composite | +1.4% |
Source: Bloomberg as at 30 November 2024.
