Market insight nov

Looking back over the turbulent year for UK markets it’s been welcomed news, if not surprising, that November finished trading up over 12%. This was the best month for three decades since January 1989.

Three main factors have influenced this dramatic upturn. Firstly, the US elections sparked a global rally. The market friendly outcome of a republican senate with a democrat president was well received by investors.

Secondly, we had the much-anticipated news of a vaccine from Pfizer, shortly followed by further promise from Moderna and Astrazenica. With three vaccines set for approval in December, there is light at the end of the tunnel for businesses and industry.

Share prices that were negatively affected by the pandemic like the Oil and Banking sectors have benefited greatly.

Finally, we seem to be close to a Brexit deal. Of course, details remain, however it’s likely the government will achieve enough consensus to have a deal by the end of the year, bringing more confidence to overseas investors.

While we expect continued volatility in the markets, as infection rates, lockdowns and vaccination progress continues – certainly November 2020 was positive for investors.

This article is distributed for educational purposes and should not be considered investment advice or an offer of any security for sale. This article contains the opinions of the author but not necessarily the Firm and does not represent a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable but is not guaranteed.

Past performance is not indicative of future results and the value of investments can fall as well as rise. No representation is made that the stated results will be replicated.

Robert Harrison

Head of Research

Robert joined Progeny in November 2019.

Learn more about Robert Harrison