Global stocks briefly touched fresh highs in dollar terms following the US election, largely driven by the United States. Stocks in continental Europe and Asia suffered most visibly in the face of Trump’s tariff threats, but those moves were exacerbated by a stronger dollar. US stock market participation also broadened, with cyclical and small cap stocks performing better. Donald Trump’s win in the US presidential election acted as a headwind for emerging market equities, due to a stronger dollar and investor concerns about the impact of Trump’s intended tariffs, particularly on China.
In fixed income, the 10-year US government bond yield completed a round trip, rising to 4.5% before ending the month lower, closer to 4.2%. Brent Crude oil was unchanged, though European wholesale gas prices rose to fresh year-to-date highs. Gold weakened, while bitcoin surged, flirting with the $100,000 threshold.
Local bonds was the best performing local asset, whereas the resource sector declined by almost 7%, as platinum mining companies come under pressure during November. The stronger Dollar resulted in the SA Rand losing 2.5% against the greenback. Read more.
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