Market Review – November 2025

November brought some increased volatility to stockmarkets, although there was little change overall to key index levels by the end of the month. In fixed income (bonds), US Treasury (US government) bond prices rose and yields fell, as investors priced in the increased likelihood of a December interest rate cut.

Stockmarkets experienced heightened volatility in November, caught between optimism on company earnings and anxiety over the valuations of artificial intelligence-related companies. In the US, market indices initially rallied on optimism following the resolution of the government shutdown and strong third-quarter earnings. Later, prices fell as investors question whether technology stocks were too expensive, before recovering again by month end.

By November’s close, the S&P 500 Index (which tracks the 500 largest US stocks) was broadly unchanged, while the Nasdaq Index (which tracks technology and growth companies) was lower. European and UK equities (company shares) were more resilient, but emerging market equities struggled, although there were some bright spots such as Brazil.

During the month, investors became more optimistic about the likelihood of an interest rate cut in the US in December. Towards the end of November, the Federal Reserve Bank of New York President John Williams said he saw room for another cut “in the near term” and the delayed US jobs report for September showed an uptick in the unemployment rate. UK Gilt (UK Government bonds) and European sovereign bond returns were broadly flat in the month, but Japanese bond prices fell sharply as the government announced a large stimulus package (a set of government measures designed to boost economic activity, typically through increased spending, tax cuts and other measures).

The Japanese yen was the worst-performing major currency in November, while the UK pound and euro strengthened against the US dollar.

Gold climbed above US$4,200 per ounce supported by rising expectations of a US Federal Reserve (Fed) rate cut and safe-haven demand. Copper prices rose again, driven by continued concerns over supply shortages, but oil declined amid oversupply and muted demand expectations.

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