Markets

Monthly markets review - November 2016

A review of markets in November 2016 when the US presidential election dominated events.

06/12/2016

Investment Communications Team

Investment Communications Team

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  • The build-up to the US presidential election and the subsequent victory for Donald Trump dominated newsflow in November. Global equities gained in dollar terms while bond markets were weaker.
  • US equities gained with economically-sensitive areas of the market leading the rally in anticipation of tax cuts and higher spending on infrastructure.
  • Eurozone equities posted a narrowly negative return as worries over political risk re-emerged, although economic indicators were largely encouraging.
  • UK equities delivered negative returns. Sterling strengthened following a High Court ruling that the government must seek parliamentary approval before triggering Article 50 to start the Brexit process.
  • Japanese equities were strong in local terms. The yen weakened against other major currencies.
  • Emerging markets delivered negative returns amid uncertainty over US foreign and trade policy.
  • Global bond markets were weaker as inflation forecasts rose and expectations grew that the US interest rates would rise in December.