Our monthly market update and portfolio positioning commentary.
Equities performed well in November significantly outperforming bonds. November’s rally followed a strong month for equities in October and was propelled by similar drivers: a pick-up in sentiment due to improving global macroeconomic data and increased optimism about the prospects for a U.S. / China trade deal.
After a year in which we saw a combination of trade and tariff uncertainty and a general slowdown in global manufacturing, it is perhaps little surprise that Germany narrowly avoided a technical recession.
The third quarter presented investors with difficult conditions, where the interplay between trade, monetary policy and growth, characterised the economic narrative that has prevailed throughout 2019.
Global equity indices declined during August as the U.S. and China exchanged tariff hikes, hurting investor confidence and raising trade concerns.
Global equities delivered a small positive gain in July amid reassuring global macroeconomic data, a temporary truce in the U.S./China trade war
Q2 brought largely negative news on the U.S.-China trade front (albeit at the end of the quarter the potential ceasefire in the trade war