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The month of November brought some good cheer to global financial markets, with more assets up than any other month since December 2020, according to data compiled by Deutsche Bank.
One of the areas that turned in the best performance was Hong Kong’s Hang Seng Index
HSI,
which had its best month since October 1998 and was up 27% in USD total return terms, according to Jim Reid, head of thematic research for Deutsche Bank
DB,
By contrast, the U.S. Dollar Index
DXY,
fell 5% in November for its worst monthly performance in over a decade, he said.
Behind the strong performance across global assets last month were growing hopes that various places like the U.S. have moved past the worst of inflation. Meanwhile, Chinese assets got support from what appeared to be some willingness by China to move away from its zero-Covid strategy.
Even though November was “a great month for most assets, that shouldn’t detract from what’s still been an awful year,” Reid wrote in a note Thursday.
Sources: Bloomberg, Deutsche Bank
Indeed, on Thursday, U.S. stock investors appeared to look past signs of easing inflation pressures in October’s U.S. personal consumption expenditure report, and focused instead on data that showed U.S. factories facing their toughest time since May 2020.
All three major U.S. stock indexes
DJIA,
SPX,
were moving lower in New York morning trading Thursday, while Treasury yields also fell, led by declines in the 7-
TMUBMUSD07Y,
through 3-year rates
TMUBMUSD30Y,
Read More: Global financial markets having ‘awful year’ despite ‘great’ November for most assets,
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