Monthly Market Roundup cov. November 2022

Market Update


Global equity markets performed strongly in November with all major regions moving into positive territory.

Positive inflation data and the possibility of an easing of the interest rate hike cycle in the US and eurozone improved investor sentiment in some regions.

Easing geopolitical tensions between the US and China after the Biden-Xi Jinping meeting also provided some relief.

November was a strong month for global equity markets with all regions advancing into positive territory. Despite widespread high inflation persisting, positive data on this front coming from the US and the Eurozone provided a boost for some regions. It also sparked hope that major central banks may ease interest rate hike cycle, which improved investor sentiment. Emerging markets once again outperformed developed markets.


European markets once again ended the month up. This was off the back of a more positive recessionary outlook and boosts from lower gas prices and a mild autumn. All sectors ended the month in the green.


Eurozone inflation fell for the first time in 17 months and by more than consensus estimates. Despite still being at 10%, it has sparked hope that inflation may have peaked and that the European Central Bank (ECB) may ease interest rate hikes.


The flash purchasing managers’ composite index (PMI) spent its fifth consecutive month below 50 (indicating that businesses are contracting). But it did rise by 0.5% in November, which was more than expected.

The UK

UK equities finished the month higher. The FTSE All-share bounced back, despite data suggesting the economy is already in recession. GDP fell 0.6% between August and September, meaning the economy shrank in quarter three of this year.


Inflation hit its highest level in more than 40 years at 11.1% in October. This was up 1% from September levels and higher than expected. The main drivers were food and energy prices, and pressure is increasing on the Bank of England to further hike interest rates.


The additional bank holiday in September meant that retail sales grew more than expected in October but remain below pre-pandemic levels overall. Unemployment was also up slightly in the three months to September, with it predicted to hit 4.9% by the end of 2023.

The US

In November, US equity markets saw their first back-to-back monthly gains since 2021. Positive inflation data, indications of less aggressive interest rate hikes – as well as easing geopolitical tension between the US and China all provided a boost.


Despite initial concerns, investor sentiment improved, and October’s year-on-year inflation data came in below consensus estimates.


Results of the midterm elections largely meant that the Republicans gained enough seats to hold a majority in the 118th congress next year. Meanwhile, the Democrats maintain control of the Senate. Historically, a split government has been good for stocks.


Asian markets recovered strongly from October’s dip with China, Hong Kong and Taiwan leading the way. In China, the real estate sector was the standout performer following news of new support measures.


Easing geopolitical tensions between the US and China after a meeting of their presidents also provided some relief. Taiwan saw both it markets and currency recover, the latter rising 4.7% against the US dollar after five months of decline.


Indian equity markets were in positive territory for the second consecutive month. Australian and Japanese markets also advanced thanks to the inflation data coming out of the US and the expected slowdown in interest rate hikes by the Federal Reserve.

Emerging Markets

In their best month since May 2009, emerging markets recorded a strong outperformance over developed markets in November. The first boost came from positive US inflation data and the second boost came from the expect easing of China’s ‘zero-Covid’ policies.


In a shift from previous months, EM Asia led the way, followed by EM Europe, Middle East and Africa (EMEA), then EM Latin America. EM Latin America was the only region to post negative returns, though remains the overall leading region year-to-date.


In Europe, Turkey and South Africa posted the largest gains. And following months of underperformance, the CE3 (Poland, Hungary and the Czech Republic) advanced strongly in November. Inflation remains at high levels though.

Fixed Income

Bond markets were boosted by positive inflation data coming out of the US in November, mostly posting gains. There was also renewed hope that the Federal Reserve (Fed) will slow down its interest rake hiking cycle.


This hope had a positive impact on the yield (which moves inversely to price) of the rate-sensitive two-year US treasury bond. It saw its largest drop since 2008 as investors repriced their expectations for US interest rate hikes.


It was also a good month for corporate bond markets with investment grade and high yield both gaining. Sterling, Euro and US corporate indexes all increased.

Environmental, Social and Governance (ESG)

Conference of the Parties (COP27) was at the forefront of ESG news in the last month. One of the biggest things to come out of the recently held conference in Sharm-El-Sheikh, was a renewed resolved at to limit global warming temperature increases to 1.5°C.


Another key development was a deal struck on loss and damage. This will see the creation of a fund by developed countries to help poorer countries impacted by climate change.


Ahead of the ‘other COP’ (the COP15 biodiversity conference) which takes place in Montreal later this year, a 10-point plan was also devised. It focuses on mobilising financing for nature-based solutions.

Investment risks


The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested. 



Important information


Data as of 30 September 2022 unless stated otherwise.

Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice.

Past performance is not a guide to future returns.                           

This document is marketing material and is not intended as a recommendation to invest in any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication. The information provided is for illustrative purposes only, it should not be relied upon as recommendations to buy or sell securities.

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