On global developed markets, there was minimal change in November. The MSCI World Index (hedged into AUD) went up only 0.4%. However, over the past 12 months, the MSCI World Index is up 16.2%.
USA
The S&P 500 went up a little – about 0.3%. There was a large movement out of “AI darlings” during the first half of November. Nvidia’s earnings lifted sentiment among AI and tech stocks, but it was not enough to stop concerns that valuations may be too high.
The US government 43-day shutdown means less economic data has been available. US and China relations improved in November, and the US granted a one-year extension to tariff exemptions for some Chinese imports.
Emerging markets
These markets were negative in November. The MSCI EM Index (unhedged in AUD) was down 2.6%. Shares in China, Taiwan and Korea reached monthly lows, as part of a broader international sell-off in tech markets (especially semi-conductor and AI).
Australia
Australian shares fell through most of November, but improved a little by the end of the month. The markets ended the month down -2.6%. The technology sector dropped -10.8% and the financial sector fell by 6.5% in November.
The Reserve Bank’s decision to keep rates on hold reflected broader signs of inflation.
Currency and bonds
Australian 10-year government bonds reached 4.52%. US 10-year government bonds however, fell by 8 basis points.
Australian bonds returned -0.9%. Global bonds returned 0.2%
The Australian dollar, compared to the USD, traded only very narrowly, returning 0.2%. Major Developed Market and Emerging Market currencies performed well against the USD.