Markets were broadly stable in November, following strong gains earlier in the year. Developed market equities rose by approximately 0.3%, while global bonds likewise recorded a small positive return. Although headline performance appeared subdued, there was meaningful rotation within markets. Defensive sectors outperformed, while technology and other growth-oriented areas faced pressure due to valuation concerns and elevated earnings expectations.
US corporate earnings remained solid, with most companies exceeding forecasts and delivering healthy profit growth. However, this did not translate into notable equity advances, as much of the optimism was already reflected in valuations. As a result, US equities were largely unchanged over the month. European markets achieved modest gains, supported by strong results from financials and IT companies, though parts of the consumer sector weakened. UK equities also rose slightly but were constrained by softer industrial activity and more cautious consumer sentiment.
Japan continued to outperform, aided by a weaker yen and ongoing strength among export-focused companies. In contrast, several Asian markets outside Japan experienced some consolidation after strong earlier performance. Technology-heavy markets such as Korea and Taiwan declined, while India remained comparatively resilient.
Bond markets delivered modest overall returns. US Treasuries strengthened as yields fell toward the end of the month. Japanese government bonds weakened due to rising yields, driven by concerns around policy sustainability and increasing inflation pressures. UK gilts were broadly stable, supported by easing inflation but tempered by fiscal uncertainty. Eurozone bond performance was mixed, with expectations of higher government borrowing placing some upward pressure on yields.
Commodities finished the month slightly higher. Precious metals benefited from geopolitical uncertainty and expectations of lower real interest rates. Energy prices softened amid a muted medium-term outlook for oil demand, and industrial metals also declined.
Overall, November was a relatively quiet month in terms of headline performance yet marked by notable shifts within sectors and regions. Elevated valuations in certain areas continue to heighten sensitivity to changes in sentiment, even as earnings remain robust and inflation trends improve in some regions. In this environment, maintaining a well-diversified allocation across regions, sectors, and asset classes, with an appropriate balance between equities and high-quality bonds, remains a prudent approach heading into the year-end.
| Market Performance | 2025 Year to Date |
| FTSE All-Share | +21.36% |
| FTSE World ex-UK | +14.43% |
| FTSE Actuaries UK Conventional Gilts All Stocks | +4.78% |
| FTSE Actuaries UK Index-Linked All Stocks | +0.82% |
Total returns in GBP to 30/11/2025
| Key Rates | |
| Bank of England Base Rate | 4.00% |
| Inflation (Retail Price Index/Consumer Price Index)* | 4.30%/3.60% |
*October 2025
Source of data: FE Analytics, www.bankofengland.co.uk, www.ons.gov.uk This commentary in no way constitutes a solicitation of investment advice and should not be relied upon in making investment decisions. Past performance is not a reliable indicator of future results. The value of your investments can fall as well as rise and are not guaranteed.