Market Update – November 2024 Snapshot

November 2024 was a dynamic month for global share markets, marked by significant gains and notable economic events. Here's a detailed look at the performance and key drivers across major markets.

Global Equities Performance

Global equities experienced robust growth in November, with the MSCI World Index rising by 4.6% in USD terms and 5.4% in AUD terms. This surge was primarily driven by strong performances in the US market, which saw a 5.7% increase in USD terms.

United States

The US market led the global rally, buoyed by positive investor sentiment following the presidential election. The re-election of Donald Trump and the Republican control of Congress fuelled optimism about potential tax cuts and deregulation. Additionally, the US Federal Reserve's decision to cut interest rates by 0.25% to a range of 4.50% - 4.75% further boosted market confidence.

• S&P 500: Up 5.7% in November

• NASDAQ: Increased by 6.2%

Europe

European markets had a mixed performance. While the overall sentiment was cautious due to concerns about potential US import tariffs, some markets managed to post gains.

• Euro Stoxx 50: Up 2.1%

• FTSE 100: Rose by 1.8%

Asia-Pacific

The Asia-Pacific region saw varied results. Japan's market showed signs of recovery with improvements in retail sales and industrial production, while China's market faced downward pressure due to fears of US tariffs impacting exports.

• Nikkei 225: Increased by 3.3%

• Shanghai Composite: Decreased by 1.5%

Australia

Australian equities also performed well, with the ASX 200 climbing 3.4% in November. This growth was supported by rising natural gas prices and increased demand for steel in China. However, underlying inflation concerns, and weaker PMI data indicated potential challenges ahead.

Key Economic Indicators

• US Inflation: Edged up to 2.6% in October, aligning with market forecasts.

• US Unemployment: Stable at 4.1%.

• Australian Inflation: Remained at 2.1% in October, with underlying inflation at 3.5%.

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