Global stockmarkets notched up record gains in November
Global stockmarkets have enjoyed their best month since 1988 this November, with the MSCI World index up 12.6%.
Global stocks have enjoyed their best month since 1988. The MSCI World index gained 12.6% in November, says David Randall on Reuters. Around $6.7trn was added to the value of global shares, equivalent to “$155m a minute”.
The pan-European Stoxx 600 enjoyed its best ever month, gaining 13.7% as the French and Italian markets notched up record returns. The FTSE 100 also had a record month (see page 5). The 15% gain on Japan’s Nikkei index was its best showing since 1994.
A month that started with Joe Biden’s election victory and progressed with a positive stream of vaccine updates kept investors in good spirits, say Claire Ballentine and Katherine Greifeld on Bloomberg. America’s S&P 500 gained 11%, a rare instance of it lagging the global average. The key theme of the month was rotation as investors moved out of tech shares and began to buy a broader range of smaller and more cyclical stocks. The tech giants lagged small caps. That goes to show that the market is finally “widening”, says Karen Langley in The Wall Street Journal. This year’s rally has been heavily concentrated in a handful of sectors. In September only 153 of the 500 shares in the S&P 500 made gains; in November, 467 did. A 17% jump in US financial shares gave the sub-index its “best month since April 2009”.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Another boost came from positive earnings news. Average S&P 500 third-quarter earnings came in only 6% lower than last year, defying predictions of a 21% slump. It is extraordinary that global markets have gained this year, even as “the virus is still on the rampage”, says Rupert Thompson of Kingswood. In a year where massive central bank support has juiced markets, rarely has the old saying, “don’t fight the Fed”, been so true.
-
Private school fees soar and VAT threat looms – what does it mean for you?
Rising private school fees could see more than one in five parents pull their children out of their current school. Before you remortgage, move house or look to grandparents for help, here’s what you need to know.
By Katie Williams Published
-
Best and worst UK banks for online banking revealed
When it comes to keeping your money safe, not all banks are equal. We reveal the best and worst banks for online banking when it comes to protecting your money from scams
By Oojal Dhanjal Published
-
AstraZeneca CEO’s £1.8mn pay rise approved despite shareholder opposition
AstraZeneca hiked its dividend to persuade shareholders to accept CEO Pascal Soriot’s pay rise. Is he worth his salary?
By Dr Matthew Partridge Published
-
Adidas, Nike or Jordans - could collectable trainers make you rich?
The right pair of trainers can fetch six figures. Here's how you can start collecting vintage Adidas, Nike or Jordans now
By Chris Carter Published
-
The industry at the heart of global technology
The semiconductor industry powers key trends such as artificial intelligence, says Rupert Hargreaves
By Rupert Hargreaves Published
-
Three emerging Asian markets to invest in
Professional investor Chetan Sehgal of Templeton Emerging Markets Investment Trust tells us where he’d put his money
By Chetan Sehgal Published
-
What to consider before investing in small-cap indexes
Small-cap index trackers show why your choice of benchmark can make a large difference to long-term returns
By Cris Sholto Heaton Published
-
Why space investments are the way to go for investors
Space investments will change our world beyond recognition, UK investors should take note
By Merryn Somerset Webb Published
-
Time to tap into Africa’s mobile money boom
Favourable demographics have put Africa on the path to growth when it comes to mobile money and digital banking
By Rupert Hargreaves Published
-
M&S is back in fashion: but how long can this success last?
M&S has exceeded expectations in the past few years, but can it keep up the momentum?
By Rupert Hargreaves Published