Global investment market review: November 2025 – performance & highlights

Over the month of November 2025, the MSCI ACWI Index, a representative measure of global equities across developed and emerging markets, dropped 0.9% in sterling terms but rose 0.1% in local terms. Europe, the UK and Japan made small gains in local currency terms, while emerging markets declined. Overall, it was a lacklustre month despite headway in some of the more defensive parts of the equity market. Growth sectors, such as technology trailed, in part on added caution towards AI-related stocks. In fixed income, the ICE BofA Global Government Index declined by 0.8% in sterling terms and but was up 0.1% in local terms. Sterling rose slightly versus the US dollar.

Crude oil futures prices declined over the month, in part on predictions of rising oil supplies and increasing hopes for a peace deal between Ukraine and Russia. European natural gas futures also declined on the potential for peace talks and higher LNG exports from the US, which have boosted supplies.

The FTSE 100 Index, a commonly used representative benchmark of the UK’s largest equities, was up 0.4% as was the FTSE All Share Index. The UK’s annual inflation hit 3.6% in October, compared with 3.8% in September. The Bank of England kept its Bank Rate at 4.0%, following a close vote at its Monetary Policy Committee (MPC) meeting in November. Four of the MPC voted for a rate cut, but five preferred to keep interest rates on hold. Meanwhile, unemployment continued to rise, hitting 5.0% in the three months to September, which compared with the previous reading of 4.8%. The flash UK manufacturing Purchasing Managers’ Index (PMI) figure stepped up from 49.7 to hit 50.2, which marked a return to expansionary territory on the back of better domestic demand. However, the preliminary UK services sector PMI report slipped back to 50.5 from 52.3. (Note that a PMI figure over 50 indicates expansion.)

Overall, it was a lacklustre month despite headway in some of the more defensive parts of the equity market.

In US equities, the S&P 500 Index dropped 0.6% in sterling terms yet was up 0.2% in US-dollar terms. The Nasdaq Composite Index, which has a growth focus, was down 2.3% in sterling terms and dropped 1.5% in local terms. NVIDIA, the world’s largest company and at the forefront of AI developments, reported quarterly results that surpassed consensus expectations. However, this update didn’t stop waning performance from technology-related stocks in November. After 43 days, the longest-ever US government shutdown came to an end during the month as funding for federal departments was extended through to January 2026. Minutes of the Federal Reserve’s (Fed) October interest rate meeting showed that policymakers were split on the near-term path of rates, as all eyes turned to its next meeting in December. Inflation stepped higher, to hit an annual rate of 3.0% compared with 2.9% previously. Because of the government shutdown, there was no release of the non-farm payroll report from the Bureau of Labour Statistics. The preliminary reading of the US manufacturing PMI for November dipped slightly. The early reading of the services PMI continued to edge further into expansionary territory.

There was a 0.6% gain in the MSCI Europe ex UK Index in sterling terms. At the country level, Switzerland rose, but the Netherlands, Germany and France all declined. Meeting minutes from the end-October European Central Bank policy meeting suggested there were mixed views from rate-setters as to whether interest rate easing had further to go amid balanced inflation risks. The second reading of Eurozone third-quarter gross domestic product (GDP) growth was unchanged at 0.2% quarter-on-quarter (q/q) growth, which represented a marginal increase on the pace in the first quarter. November’s flash eurozone manufacturing PMI slid back into contraction with a reading of 49.7, compared with 50 in October. However, the preliminary services PMI continued to expand and saw a modest pick up on the previous month’s reading.

Growth sectors, such as technology trailed, in part on added caution towards AI-related stocks.

The MSCI Japan Index was down 1.5% in sterling terms and up 0.6% in local terms. The yen weakened against the US dollar in November. Rising tension with China had a somewhat negative impact on exposed sectors, but robust economic figures continued to provide a fillip. Annual inflation stepped up to 3.0% from 2.9%, in part on electricity costs. Rhetoric from central bank policymakers appeared to indicate that, amid improved economic conditions and rising underlying inflation, conditions could perhaps justify another interest rate hike on the road to monetary policy normalisation.

The MSCI Emerging Markets Index declined 3.2% in sterling terms and fell 1.6% in local terms. Brazil, South Africa and Mexico all gained in local terms, while Saudi Arabia, China, and Taiwan slipped back. Annual inflation continued to slow in Brazil, moving from 5.17% to 4.68%. However, the country’s central bank still viewed inflation as a risk to the economy, and this contributed to its decision to keep rates on hold at 15% in November. However, GDP growth was weak and led to growing anticipation of a rate cut in the coming months, while rising expectations of a cut in the US also helped propel the country’s equity market. Taiwan, Korea and China saw some weakening of technology stocks. China’s industrial production hit its lowest level this year, with a reading of 4.9% year-on-year (y/y) growth. This compared with 6.5% y/y growth in the previous month and expectations for a 5.5% y/y expansion. Meanwhile exports declined 1.1% y/y compared with 3.0% y/y expected and 8.3% y/y expansion in September, as orders tailed off. Imports also slowed – reaching 1.0% y/y growth, versus 7.4% in the pervious month amid softer domestic demand. The Bank of Korea kept its interest rate at 2.5% as it continued to have concerns about house prices and current currency market conditions. Annual inflation in Korea remained at 2.4%.

There was a 4.3% slide in the MSCI AC Pacific ex Japan Index in sterling terms and a 2.7% decline in local terms. At the country level, India made a small gain, while China, Australia and Taiwan declined in local terms. India’s inflation reached a lower-than-expected 0.25% in October compared with September’s revised figure of 1.44%. This move took it even further below the 2% lower band of the Reserve Bank of India’s target range, as food prices declined over 5% over the year – the biggest fall this category has ever recorded. At the same time, third-quarter GDP came in at a strong 8.2% y/y growth, up from 7.8% in the second quarter, this rise was despite the tough trade tariff backdrop and rupee weakness as consumer spending picked up. Bank Indonesia held rates again in November as it believed in bolstering the currency and keeping inflation within its target range. Indonesia’s annual GDP growth for the third quarter came in inline with market expectations at 5.0%, broadly matching the pace in the second quarter. In October, Australia’s inflation rate stepped up from 3.6% to 3.8%, moving it further above the central bank’s target range of 2-3%.

In fixed income markets, government bonds were marginally up in local currency terms, broadly matching the small rise in from both high yield and investment grade credit. The 10-year US Treasury yield declined (bond prices rose) from 4.10% to 4.02% as unemployment rose and some economic uncertainty pushed expectations for a further rate cut from the US Fed in the near term. The UK gilt yield was initially impacted by pre-budget uncertainty, but the yield fell back on expectations of reduced gilt supply and news of an improved fiscal situation. In Germany, bund yields rose after updates on the large government borrowing plans. Japanese government bonds saw yields gain (prices fell) amid worries about inflation and rising expectations that interest rates may need to be increased.

The FTSE EPRA Nareit Developed Index, a measure of the performance of Real Estate Investment Trusts (REITs), added 1.2% in sterling terms. Note that REITs tend to be sensitive to interest rate expectations. During the month to end-October – the latest period with available figures – the MSCI UK Monthly Property Index increased 0.4%. The office and industrial segments have been relatively robust, and there has also been recent improvements in demand for retail property, helped by interest rate reductions.

* All index data are shown in total return sterling.
Source: FE Analytic