US Stock Indices Close November with Exceptional Performance: November ended with remarkable performance in US financial markets,
as the “S&P 500” recorded its strongest monthly gain this year.
This was accompanied by shifts in bond yields and the dollar,
driven by speculation about potential policy changes post-elections.
This report explores the impact of US economic policies and the global markets’ response,
including Europe, Canada, and Japan.
Content
Global Performance of Stocks and Currencies
Notable US Performance
US stock indices ended the short trading session on Friday higher,
while Treasury yields fell across all maturities.
This was attributed to expectations that President-elect
Donald Trump might adopt less stringent trade policies,
leading to the dollar’s most significant weekly loss in three months.
The “S&P 500” index rose by more than 1%
for the second consecutive week and climbed 0.6% on Friday to reach new record levels.
Meanwhile, the 10-year Treasury yield declined to 4.17%,
and the Bloomberg Dollar Spot Index continued its
weekly decline by over 1% after an eight-week winning streak.
Trump’s selection of a Treasury Secretary nominee
boosted optimism that tariffs would be more measured.
This would support the performance of US stocks and bonds while weakening the dollar.
Most robust Monthly Performance for “S&P 500”
The S&P 500 rose 5.7% in November,
marking its best monthly performance of the year.
According to EPFR Global data,
investors poured approximately $141 billion into
US stocks during the month had the largest four-week inflow on record.
This performance was driven by a small group
of major technology stocks amid expectations of the
Federal Reserve lowering interest rates while the US economy grows.
Max Kettner, Chief Multi-Asset Strategist at “HSBC Holdings,”
stated in an interview with Bloomberg Television:
“What matters now is that the Federal Reserve is shifting its policy,
leading to lower real interest rates and higher stocks. The current conditions are ideal.”
Global Performance of Stocks and Currencies
Canada and Europe:
- In Canada, the economy recorded modest growth last month,
increasing the likelihood of the central bank continuing to cut interest rates. - In Europe, fiscal spending appears to be improving,
with expectations that any potential ceasefire
in Ukraine could ease the pressure from rising energy prices.
Eurozone:
Inflation rose above the European Central Bank’s 2% target,
but only slightly, which is unlikely to alter the course of monetary policy.
Japan:
The yen briefly dropped below the 150 level against
the dollar after the Bank of Japan Governor
Kazuo Ueda stated that further currency weakening poses significant risks.
Earlier, the yen had rebounded above this level following
Tokyo inflation data showing higher-than-expected price increases,
raising bets on a potential interest rate hike at the Bank of Japan’s upcoming meeting.
November Performance Summary
The performance of US markets in November highlights the
relative strength of the US economy compared to the rest of the world,
supported by expectations of interest rate cuts
and substantial inflows into stocks.
As global market developments continue,
the future of monetary policies remains a critical factor in shaping market directions.
US Stock Indices Close November with Exceptional Performance