This monthly commentary gives a round-up of global markets and trends.
In this edition:
- Global stock markets have rallied since mid-October, buoyed by lower US inflation data, resilient corporate earnings and signs of reopening in China
- The latest US CPI figures in October were lower than expected, bringing down government yields and interest rate expectations
- Companies have shown significant pricing power, using the inflationary environment as an opportunity to raise prices over and above input costs. This has supported earnings data
- China is rolling back some of its zero-Covid restrictions in the face of public protests. This could help unblock supply chains, which may curb inflation
- The US dollar has reigned supreme in foreign exchange markets in 2022, but is it losing its currency crown?
The value of an investment may go down as well as up and you may get back less than you originally invested.
Past performance is not a guide to future performance.