Equities enjoyed a positive November, marking back to back monthly gains for the first time in 2022. Markets were buoyed by a growing consensus that inflation has peaked in the US, and this will subsequently lead to a more dovish approach from the Federal Reserve. The latest reading for headline inflation in the US saw a fall from 8.2% to 7.7% with the core figure also registering a drop. Remarks to the Brookings Institute by Fed Chair Powell on the last day of November helped to reinforce the dovish rhetoric.

However, wider economic data throughout the month further illustrated the risks to the global economy and the continued probability of a recession in some developed markets. Flash leading indicators such as PMIs did stabilise in Europe throughout November, but higher interest rates are still forecast from both the Federal Reserve and the ECB in December. The key 2yr v 10yr US treasury yield curve also remains at its most inverted since the early 1980s.

European energy prices have stabilised due to a combination of milder than expected weather and a coordinated policy response. The more dovish sentiment from the Fed, along with more positive sentiment generally has seen the US dollar weaken against the Euro, in a reversal of the general trend seen in 2022.

For full details of last month's market movements you can download our monthly reports below.