The financial markets clearly welcomed the announcement of Donald Trump’s incoming presidency. Performances speak for themselves: global equities reached +6,66%*. Taking a closer look, it should also be noted that US equities benefited the most, gaining +9,22%* in euros. For its part, Europe ended the month on a hesitant rise, posting a dismal +1,08%*, as the Old Continent finds itself subject to Mr Trump's threats regarding customs tariffs. However, it was nothing compared to emerging markets, which lost -0,90%*, or China, which finished in the red at -1,74%* at the end of the month.
A closer look at the sectors shows that the US bank sector is leading the way with +17,30%*, supported by expectations of the deregulation that the US president-elect has vocally promised. Elsewhere, the Consumer Discretionary segment was also strong, driven by the significant outperformance of Tesla, which surged by 42%* at the end of the month.
In terms of currencies, the greenback continues to appreciate against the single currency, at 1,0577 per euro.
On the bond front, November was less upbeat than October. US bond yields fell by a few basis points (-11bp for the 10-year), in particular since the appointment of Scott Bessent as Treasury Secretary. Indeed, the hedge fund manager at Soros is seen as a counterweight to Donald Trump both on the issue of tariffs and on tax evasion. For the eurozone, Germany in particular, bond yields fell significantly (-30bp on the 10-year). Fears of a bitter trade war with Europe could have a major impact on its already troubled economy, such as a shock wave that could push the ECB towards an even more dovish monetary policy in the coming months.
While gold soared for several months in a row, this upward trajectory came to a halt, falling 5,3% over the month. In addition, with Donald Trump’s arrival at the White House, the markets saw the possibility of an imminent end to the main armed conflicts in Ukraine and the Middle East.
The US economic data reflects a robustness that appears unwavering. GDP for the third quarter was confirmed at 2,8%, leading to excessively persistent inflation that is struggling to move towards the target set by the US Federal Reserve (Fed). It remains at 2,6%, and if we exclude the most volatile elements such as energy and food, 3,3%.
For its part, Europe is in much less Olympic form. GDP for the third quarter was set at 0,9% and in terms of inflation, the downward trend is confirmed, with headline inflation at 2% and core inflation at 2,7%.
*Performances are calculated in euros.
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