US markets ground modestly higher in what was a holiday shortened trading week due to the Thanksgiving holiday. The S&P 500 and NASDAQ added +1.0% and +0.9% respectively despite a retracement in large constituent NVIDIA which fell on the back of cautious future guidance even after it handily beat both revenue and profit estimates[1]. Treasury yields also ended the week higher, the 10-year concluding Friday up 4 basis points (bps) at 4.50% having briefly reached a 2 month low on Wednesday.

In the UK, the FTSE 100 and FTSE 250 both fell slightly, the former by -0.2% and the latter -0.6%. Weak economic growth forecasts by the Office for Budget Responsibility (OBR), which slashed estimates for both 2023 and 2024 likely weighed on sentiment[2]. Elsewhere in Europe, the MSCI Europe ex UK index added +1.0%, maintaining its strong November momentum. That was despite a sixth straight monthly contraction in the Eurozone’s Purchasing Manager Index (PMI) with a recession looking increasingly likely on the Continent[3].

Elsewhere in global equity markets, the Shanghai Composite in China declined by -0.4% with news that the government would introduce additional property sector stimulus not enough to assuage investors fears. Japan’s Nikkei 225 ended the week +0.1% higher having reached its highest level since 1990 earlier in the week. Recent corporate results have been generally strong with Yen weakness supportive of those businesses with significant overseas earnings.

In the commodity markets, oil prices retreated modestly with brent crude concluding the week -0.5% lower at $80.27 a barrel. Gold briefly climbed above the $2,000 mark thanks largely to weakness in the US Dollar. The precious metal ultimately finished the week at $1,999 an ounce, notching a gain of +0.9%. Copper prices also advanced to $8,330 a tonne, reflecting increased confidence on the back of those fresh Chinese property sector stimulus measures.

Week Ahead

Source: Refinitiv Workspace, 27/11/23

[1] T. Rowe Price – Global Markets Weekly Update 24/11/23

[2] OBR – Economic & Fiscal Outlook Nov’23

[3] S&P Global – Flash Eurozone PMI Nov’23

Past performance is not indicative of future performance.

The value of an investment may fall as well as rise. You may get back less than the amount invested.

The value of investments may fall as well as rise purely on account of exchange rate fluctuations.

Source: London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). © LSE Group 2023. FTSE Russell is a trading name of certain of the LSE Group companies. “FTSE Russell®” is a trade mark of the relevant LSE Group companies and is used by any other LSE Group company under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company which owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company's express written consent. The LSE Group
does not promote, sponsor or endorse the content of this communication.

© S&P Dow Jones LLC 2023. All rights reserved

Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, endorsed, reviewed or produced by MSCI. None of the MSCI data is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such.

The information contained does not constitute investment advice. It is not intended to state, indicate or imply that current or past results are indicative of future results or expectations.

Full advice should be taken to evaluate the risks, consequences and suitability of any prospective investment. Opinions provided are subject to change in the future as they may be influenced by changes in regulation or market conditions. Where the opinions of third parties are offered, these may not necessarily reflect those of Rowan Dartington.

Rowan Dartington is part of the St. James’s Place Wealth Management Group. Rowan Dartington & Co. Limited is a member firm of the London Stock Exchange and is authorised and regulated by the Financial Conduct Authority. Registered in England & Wales No. 02752304 at St. James’s Place House, 1 Tetbury Road, Cirencester, England, GL7 1FP, United Kingdom.

SJP Approved 27/11/2023