a
Market Commentary | November 2023

It is pleasing to start our November market commentary by stating that both Equities and Bonds rallied throughout the month. Slowing global inflation on both sides of the Atlantic strengthened market sentiment that we may have now reached peak interest rates, with growing expectations of possible rate cuts for 2024.

This has been boosted by falling energy prices. Despite the geopolitical situation threatening oil production, supply and the available market participants, we have now seen the price of oil fall lower than before the conflict in the Middle East and even before Russia’s invasion of Ukraine in February 2022.

In the US, driven by the ‘Magnificent Seven’ (Tesla, Microsoft, Meta, Apple, Google, Nvidia and Amazon), all three major US equity indices regained their footing in November with the S&P enjoying its 18th best-performing month since 1950 (which equates to 886 months!) growing 8.9% in USD dollar terms.

The strength of the US economy continued to paint a mixed picture. Third quarter GDP growth was shown to beat expectations at 5.2%, whereas nonfarm payroll data came in 30,000 below expectation at 150,000, and significantly down from 297,000 previously reported. Markets digested this news as an indication that recent interest rate increases are helping to slow down economic activity and thus reducing the need for further rises.

In Europe, Eurozone inflation fell to 2.4% from 2.9% in October, marking the lowest monthly figure since July 2021. This has been driven predominately by falling energy and food costs. The easing price pressures have prompted hopes that the Eurozone may be the first region to cut interest rates in 2024 to boost the chances of greater economic activity.

Whilst Jeremy Hunt presented his Autumn Statement to Parliament in November (which you can read more about in our Autumn Statement Guide), inflation fell sharply from 6.7% to 4.6% allowing the FTSE All Share index to grow by 3.0%. This growth was concentrated within smaller to mid-cap companies as strong Sterling performance held back the internationally exposed larger companies.

Asia Pacific stock markets rebounded across the board with South Korea, Taiwan and the Philippines emerging as the strongest markets. Gains within China’s equity market were more modest, due to the ongoing crisis within the Real Estate sector, and fear stimulus measures by the Chinese government will be insufficient to spur on growth.

On the back of changing interest rate expectations, Global Fixed Income markets performed particularly well, registering their strongest monthly performance since the 2008 financial crisis. Fortunately, we did not see the volatility within UK Government Gilts in this Budget Statement in comparison to the events following the update announcement by the government last Autumn, signalling that perhaps lessons have been learned.

Overall, we are pleased to have experienced a very positive month and we hope to see a further ‘Santa Rally’ in December.

If you have any questions regarding this update or if you would like to speak with an Independent Financial Adviser regarding your investments, please do not hesitate to get in touch on 01463 242242.

Author: Douglas Sims, Dip PFS, Independent Financial Adviser, Integrity365

Published: 20th Dec 2023

Related Posts

The Autumn Statement 2024: Your Summary Guide

The Autumn Statement 2024: Your Summary Guide

In this update, MacDonald Partnership and Integrity365 CEO, Matt Goy, discusses some of the key points within the 2024 Autumn Budget statement for clients to pay particular attention to which could impact financial planning arrangements. Yesterday afternoon,...

Hiring in Inverness: Paraplanner

Hiring in Inverness: Paraplanner

An excellent job opportunity has arisen within MacDonald Partnership for a talented Paraplanner to join the team in our Inverness office. The role: We are currently looking to expand our team of office-based paraplanners to support our Independent Financial Advisers....

Market Update | September 2024

Market Update | September 2024

In this market update, Integrity365 Independent Financial Adviser, Douglas Sims, looks back on key activity over the last month. September was a relatively quiet month for stock markets in comparison to the previous few months and even years. Although valuations...

Gift Wisely: Tax-Smart Financial Support for Family

Gift Wisely: Tax-Smart Financial Support for Family

During the cost-of-living crisis and similarly difficult situations, helping a family member out financially can be a generous and supportive gesture. However, there are many rules to consider beforehand to ensure that you are not impacting your standard of living and...

How to Calculate Your Income Requirements for Retirement

How to Calculate Your Income Requirements for Retirement

When planning for retirement, it is important to have a clear savings goal by calculating how much income you will need to sustain your lifestyle at retirement. The transition from working to retirement is a significant change to adjust to. Most significantly, your...

The Upcoming Autumn Budget 2024

The Upcoming Autumn Budget 2024

Since Labour’s recent win in the 2024 UK General Election and the speech made by the Prime Minister yesterday, there has been much speculation ahead of the new Chancellor of the Exchequer’s first Autumn Budget Statement which will be delivered on 30th October,...

Market Update | July 2024

Market Update | July 2024

In this market update, Integrity365 Independent Financial Adviser, Douglas Sims, looks back on key activity over the last month. After much anticipation for this year's busy political calendar, July emerged as an encouraging month for investors, following the UK...

Market Update | June 2024

Market Update | June 2024

In the midst of a turbulent political climate, financial markets faced a protracted period of uncertainty in June, leaving many investors on edge as they grappled with the implications of shifting global power dynamics. In the lead-up to Labour’s landslide win in the...

5 Key Considerations When Choosing Your Nominated Beneficiaries

5 Key Considerations When Choosing Your Nominated Beneficiaries

When it comes to appointing a beneficiary, whether that be for a will, insurance document, pension plan or Trust, you may be quick to add a name without proper consideration and forget about it soon after. However, your choices here can have a lasting impact on your...

New Inverness IFA Joins MacDonald Partnership

New Inverness IFA Joins MacDonald Partnership

MacDonald Partnership are delighted to announce a new Independent Financial Adviser has joined the Inverness team. Bradley Cross will be working alongside Ross MacDonald in Inverness to help business owners, individuals and their families navigate the complexities of...