First off we hope you had a great Thanksgiving and were able to spend time relaxing with family and friends while also enjoying some great food.
Economy
- U.S. equities posted gains during the week ending November 25 amid a slowdown in trading activity and improved investor optimism. Investors adopted a favorable outlook of the November minutes released by the U.S. Federal Open Market Committee (FOMC).
- The minutes of the meeting revealed that “a substantial majority of participants judged that a slowing in the pace of increase in the federal funds rate would likely soon be appropriate.” The FOMC hiked its benchmark interest rate by 0.75% to a range of 3.75% to 4.00% following the meeting. Nonetheless, the 7.7% rise in the Consumer Price Index in October remained well-above the FOMC’s long-term goal of 2% and the members “agreed that ongoing increases in the target range for the federal funds rate would be appropriate and would help keep longer-term inflation expectations well anchored.”
- According to the U.S. Department of Labor, the number of initial unemployment insurance claims rose by 17,000 to 240,000 during the week ending November 19, and the previous week’s total was revised upward by 1,000 to 223,000. The four-week moving average of initial claims increased 5,500 to 226,750, but remained below the 267,000 average for the same period a year earlier. Despite the upturn in initial unemployment insurance claims last week, the labor market remains tight, which provides the Fed with little incentive to end or significantly slow the pace of its monetary policy tightening in an effort to curb inflation.
Stocks
- U.S. equities were in positive territory. Utilities and materials were the top performers, while energy and information technology lagged. Value stocks led growth stocks and large caps beat small caps.
- Global equities closed higher for the week. Developed markets fared better than emerging markets.
Bonds
- The 10-year Treasury bond yield decreased to 3.68% during the week.
- Global bond markets were in positive territory this week.
- Global corporate bonds led, followed by global government bonds and high yield bonds.
