Globally, equity markets rallied strongly in November. In the US, the S&P 500 increased +5.7%%, the Nasdaq rose +6.2%, whilst in the UK increased +2.2%.

In Australia, the All Ordinaries Accumulation index also performed well, increasing +3.7%. On the ASX, the top performing sector was technology (boosted by strong performance from the Nasdaq), whilst materials stocks underperformed. The main macroeconomic news of the month was the US Federal election, where the decisive victory of Donald Trump's Republican party was seen as very positive for the global economy and equity markets. At this early stage, it appears the US economy has the prospect of lower taxes, less regulation and a "pro-economic growth" focus. US stocks, and US small caps in particular, rallied strongly post the election result.

Bond markets were relatively quiet in November. The US 10 year government bond yield fell slightly -6 basis points (bp) to close at 4.22%, whilst its Australian counterpart fell -16bp to end the month at 4.34%.