Market Update - Month Overview (October-November 2024)

Summarised by Dylan Sinclair (Report via Lonsec)

Domestic Markets Summary

Since October, Australian equities faced challenges, with the ASX 200 Accumulation Index declining by 1.3%, marking its worst month since April. Despite hitting record highs mid-month, factors such as resilient inflation, strong employment, and underwhelming retail sales dampened market sentiment. Financials gained due to stable economic data, while Utilities (-7.2%), Consumer Staples (-7.0%), and Materials (-5.2%) led declines. Major events included AGL Energy’s sell-off and Woolworths' weakened profit guidance. The residential property market saw mixed performance, with Perth continuing strong growth, while Sydney, Melbourne, and Darwin recorded declines. Overall, rising uncertainty weighed on Australian markets.

International Markets Summary

Global equity markets showed mixed results since October. Developed markets (+3.9%) outpaced emerging markets (+1.2%). U.S. indices like the S&P 500 and NASDAQ retreated after multi-month rallies, driven by election uncertainty and moderating inflation. Japan’s Nikkei 225 (+3.1%) benefited from a weaker yen and rising bank stocks, while Chinese markets fell as stimulus effects waned. U.S. bond yields increased after a Federal Reserve rate cut, reflecting inflationary concerns. Meanwhile, REITs and infrastructure indices declined globally, and the Australian dollar weakened against major currencies, particularly the USD (+5.4%), influenced by global policy shifts and economic conditions.