Global market update – November
The past month brought encouraging news for investors, despite lingering volatility. Major equity indices reached new highs, buoyed by positive developments, including further interest rate cuts and easing trade tensions. At the same time, inflation trends remain mixed across regions, keeping central banks on their toes. Overall, we remain cautiously optimistic and want to reassure you that your portfolio is positioned to navigate these changing conditions with confidence.
Global equities extended their gains in October. Major indices, such as the S&P 500 and Dow Jones, notched a sixth consecutive month of growth, with technology and AI-related stocks leading the rally on robust earnings. Despite some mid-month volatility caused by trade tensions, overall sentiment remained upbeat.
Economic trends
Global economic signals are mixed but generally positive. The US economy remains resilient, with consumer spending remaining strong, and the job market, although cooling, remains solid. Europe’s growth is uneven but not stalling.
In Australia, inflation remains stubborn at around 3%, which explains the RBA’s caution. Meanwhile, China’s recovery remains sluggish, though policymakers are providing support. Overall, the world economy is growing modestly despite some headwinds.
The outlook
We remain cautiously optimistic as we head into the year-end. Easing inflation and supportive central bank actions have brightened the outlook for both stocks and bonds. That said, risks like geopolitical flare-ups or an inflation surprise could still cause short-term volatility. We’re maintaining a balanced approach: continuing to favour quality growth assets (equities) for their long-term potential, while also holding defensive buffers like cash and gold.
If markets do pull back, we see it as an opportunity to invest in solid assets at better prices rather than a cause for alarm. We’ll closely monitor the landscape and adjust as needed, but we’re confident that a well-diversified, patient strategy will keep you on track toward achieving your goals.
Call us today for professional wealth advice
Our goal is to help you focus on long-term growth and wealth preservation.
Cayle Petritsch, Director and Wealth Advisor, is a leading financial advisor on Sydney’s North Shore.
He has helped many Australians maximise their financial position and leverage opportunities, leading to sustained and profitable wealth accumulation. Contact Cayle today.
FAQs
What drove the recent rise in global share markets?
Global equities continued to perform strongly in October, with major indices such as the S&P 500 and Dow Jones achieving a sixth straight month of growth. The key drivers were strong corporate earnings—particularly from technology and AI-related sectors—alongside improving investor confidence due to interest rate cuts and easing trade tensions.
How are different regions performing economically?
Economic conditions remain uneven across the globe. The US economy is showing resilience, supported by steady consumer spending and a still-strong job market. Europe’s growth is patchy but holding up, while Australia faces stubborn inflation at around 3%, prompting a cautious stance from the Reserve Bank. In contrast, China’s recovery continues to lag, though government support measures are in place to stimulate activity.
Why is inflation still a concern for investors?
Inflation trends vary by region, creating uncertainty for central banks and investors. While some countries are seeing price pressures ease, others—like Australia—still face elevated inflation. This divergence affects interest rate policies and market sentiment, making inflation a key factor influencing both short-term volatility and long-term investment decisions.
What is the current investment outlook?
The overall outlook remains cautiously optimistic. Easing inflation and supportive central bank actions are improving prospects for both shares and bonds. While short-term risks such as geopolitical tensions or unexpected inflation spikes remain, the broader trend suggests steady economic progress and opportunities for investors who stay the course.
How is the portfolio positioned to manage market changes?
Portfolios are being managed with a balanced approach—emphasising quality growth assets like equities for long-term potential, while maintaining defensive buffers such as cash and gold. This mix helps protect against short-term volatility and ensures flexibility to take advantage of opportunities when markets temporarily pull back.
What should investors do amid ongoing uncertainty?
Rather than reacting to market swings, investors are encouraged to remain patient and focused on long-term goals. Market pullbacks can present opportunities to buy quality assets at more attractive prices. A diversified strategy—supported by professional oversight—remains the best way to navigate volatility with confidence.
Key takeaways
Global markets gained momentum – Major share indices, led by technology and AI sectors, continued to climb in October, marking six consecutive months of growth.
Economic signals are mixed but positive – The US remains resilient, Europe’s growth is uneven, Australia faces persistent inflation, and China’s recovery is sluggish but supported by policy measures.
Outlook remains cautiously optimistic – Easing inflation and central bank support are improving prospects, though risks such as geopolitical tensions and inflation surprises may cause short-term volatility.
Balanced portfolios are key – A combination of quality growth assets and defensive holdings like cash and gold helps investors stay resilient and seize opportunities during market pullbacks.
Driven by our values
Effortless and Seamless
On-Boarding Process
Intuitive and Knowledgeable
Direct Expert
Access
Useful and Articulate
Financial
Reporting
Forward
Thinking
Compliance Solutions
Streamlined
Tech
Integrated and Automated
Reach out we are here to help
Recognising the uniqueness of each business, we specialise in customised accounting services crafted to meet your specific needs and drive business growth.
Don’t hesitate to contact us if you’re ready to streamline your financial management with tailored solutions. Your business’s success is our primary focus. Fill in the contact form or call us to book an initial 30-minute chat.
Suite 6, 11 Oaks Avenue
Dee Why, Northern Beaches
NSW 2099
Australia