Markets saw a decent overall performance in November, with US equities bouncing back strongly from their October losses as the S&P 500 hit another all-time high, aided by the best month for the S&P since Nov 2023. European sovereign bonds also advanced as investors priced in faster rate cuts from the ECB. But there were a few weaker spots, with French assets underperforming given the country’s budget situation, while the Euro itself posted its biggest decline against the US Dollar in 18 months as investors contemplated the prospect of further tariffs. And given the dollar’s strength in November, it meant many of the returns were even worse in USD terms.
What follows is Deutsche Bank's Month in Review, starting with the high-level macro overview:
The US presidential election on November 5 was the main event of the month, which resulted in a victory for Donald Trump, as well as Republican sweep of the House of Representatives and the Senate. That backdrop saw US equities do very well, and the S&P 500 (+5.9% in total return terms) recovered strongly from its October decline, with is its strongest monthly performance of 2024 so far. Moreover, those gains were broad-based, with the equal-weighted S&P 500 (+6.4%) seeing an even larger gain. Several sectors saw a strong outperformance, with the KBW Bank Index (+13.6%) posting its strongest month in a year.
