News & Insights

Trump’s victory in the US presidential election was greeted warmly by market participants.

US equities ended the month of November sharply higher with the major US equity indices ending the month at, or close to, record highs. US bond yields stabilised on the news that veteran hedge fund manager Scott Bessent will serve as the next Treasury Secretary.

Bessent is expected to prioritise economic stability and inflation control with a measured approach to tariffs.

Non-US equities fared less well. UK equities rose approximately 2%, while investors in Europe, Japan and emerging markets suffered negative returns for the month. 

Within the foreign exchange markets, the Japanese yen was firm on expectations that interest rates are likely to be increased in December. The pound fell approximately 1% versus the dollar, while the euro came under pressure in the wake of the political storm surrounding the French austerity budget. Gold experienced profit-taking having been firm for much of 2024, declining by 3% in US dollar terms.

Investors can expect positive returns across all currencies and risk categories of the ARC indices, with sterling and euro denominated portfolios benefiting once again from US dollar strength.