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.
