Global Markets Overview is published and updated every month. This includes what has happened in markets, our macroeconomic outlook and price updates on assets such as government bonds, credit and equities.
In this Global Markets Overview
The top highlights from our latest Global Market Overview.
Our November Global Markets Overview explores the ultra short-term impacts of the US election on financial markets:
- Former-President Trump won a second, non-consecutive term, securing both the electoral college and the popular vote.
- Republicans have also taken control of the Senate. Control over the House of Representatives remains undecided (as of 11 November) but is very likely to result in a slim Republican majority.
- A Republican sweep, meaning control of both houses, would give the new administration greater scope to advance its legislative agenda.
- Market reaction on the day after the polls closed aligned with our view that markets would initially see Trump's policies – on tariffs, immigration, tax cuts, and deregulation – as likely to boost corporate profitability but also likely to add to inflation and a larger government deficit, potentially slowing future Fed rate cuts. For example:
- The S&P 500 rose 2.5% to new highs
- The US 10-year government bond saw a sharp sell-off with the yield rising over 15 basis points
- The dollar strengthened, particularly against currencies like the Mexican Peso and Chinese Yuan, which face higher tariff risks.
- Subsequent price action over the following days was more varied – and again in-line with our views – with US equities and the dollar holding on to their gains, whereas US government bonds reversed their immediate post-election move.
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David is the Global Head of Asset Research at WTW, responsible for economic and capital market research. He also is a member of the Investment Assumptions Committee, who help guide investment policy globally.
