Recap of the market: November to be remembered!

By Gustavo Nils Dec2,2023

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The markets saw significant volatility in November, with the FOMC taking center stage as investors repositioned after significant market moves. Looking ahead to the end of the year, the markets are expecting rate cuts to be fully priced in for May, according to Fed funds futures.

Key economic indicators and central bank actions have played a role in shaping market trends. Core PCE fell to 3.5% y/y, reflecting progress on the FOMC’s inflation goal. Meanwhile, OPEC+ announced an additional 1 million barrels in cuts, with Saudi Arabia expected to extend its voluntary cut of 1 million barrels.

Market trends have seen Treasuries rally on FOMC expectations, leading to a steepening of the curve and mixed results on Wall Street. The US30 and US100 performed well, with the US30 seeing its second best November since 1980. Additionally, Asia stock markets faced pressure despite better-than-expected China Caixin manufacturing PMI.

In terms of financial markets’ performance, the USDIndex recovered from a slide, while EURUSD broke below 1.09. Key movers included USDJPY, USDCAD, and GBPUSD. Gold slipped, and USOIL slumped after spiking on OPEC+ production cut announcements. The EURCHF saw a significant decline, reaching key support levels.

Overall, November proved to be a memorable month for the markets, with a range of economic, central bank, and market trends shaping performance.

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