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November 2020 – Market Update

With Covid infections on the rise, many nations have resorted to stricter lockdown measures, which has resulted in equity markets wobbling. The MSCI World index, which measures global equities, fell 3% in October, pushed down by a major sell-off in the last week of the month.

Source: Bloomberg. Based on total returns, in US dollars. Past performance is not a reliable indicator of future returns.

Last week’s sell-off was particularly severe in Europe, with both France and Germany announcing new national lockdown measures. The Eurostoxx 50 index ended the month down more than 7%.

All eyes are on the US for the presidential election which is taking place today (Tuesday). Whoever wins will become the oldest US president in history – a title already held by Donald Trump. Joe Biden has been leading the polls in the run-up to the big day, but it is far from being a foregone conclusion.

A full round-up of October market performance

In the UK, the FTSE 100 index slipped -4.75%, while medium and smaller companies, measured by the FTSE 250 ex IT index and the FTSE Small Cap ex IT index, returned -1.03% and +1.89% respectively. In the US, the S&P 500 index lost -2.66% while in Europe the Eurostoxx 50 index plunged -7.29%. Japanese stocks measured by the Topix index fell -2.84%.

Emerging markets fared better during the month, with the MSCI Emerging Markets index gaining +1.51%. This was led by Chinese and Indian stocks, as the MSCI China index rose +5.16% and the IISL Nifty 50 PR index grew +3.51%. Latin American equities, measured by the MSCI Latin America index, declined -0.64%.

In the fixed income market, UK government bonds, measured by the FTSE Gilts All Stocks index, fell  -0.53% and long dated (over 15 years to maturity) gilts sank -0.97%. European corporate bonds, measured by the Markit iBoxx Euro Corporates index, put on +0.79% while sterling denominated corporate bonds, measured by the Markit iBoxx Sterling Corporates index, gathered +0.20%. In the high yield market, the Bank of America Merrill Lynch Euro High Yield index and the Bank of America Merrill Lynch Sterling High Yield index rose +0.25% and +1.13% respectively.

Commodities had a negative month. The S&P GSCI index, which consists of a basket of commodities including oil, metals and agricultural items, slumped -3.57%. The price of a crude oil futures contract plunged -10.38%. The precious metals had mixed fortunes as the S&P GSCI Gold and Silver indices returned -0.81% and +0.66% respectively. In the agricultural markets, corn and wheat delivered +5.42% and +4.36% respectively.

In the currency markets, the pound had a mixed month as it gained +0.21% against the US dollar and +0.90% versus the euro but lost -0.58% against the yen.

Past performance is not a reliable indicator of future returns. The value of your investments and any income you take from it may fall as well as rise and is not guaranteed. You might get back less than you invest. Further details of the risks associated with investing in Courtiers funds can be found in the Key Investor Information Document or Prospectus, copies of which are available on request or at www.courtiers.co.uk.

Issued by Courtiers Asset Management Limited, CAM1120463. Courtiers Asset Management Limited is Authorised and Regulated by the Financial Conduct Authority – Register No: 616322. Address: 18 Hart Street, Henley on Thames, Oxfordshire RG9 2AU. Telephone: 01491 578368 Fax: 01491 572294 Website: www.courtiers.co.uk.

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