November Monthly Market Review
- Anthony Walters
- Dec 12, 2025
- 4 min read
Global markets entered November amid a delicate balancing act, as central banks paused policy moves while inflation continued to cool but remained stubbornly above target. Investors were forced to navigate mixed macro signals, pronounced regional divergences, and shifting sector leadership, with defensive areas gaining favour as technology stocks came under pressure. Against this backdrop, performance across markets was uneven, yet diversified strategies proved relatively resilient, underscoring the value of balance during a period of policy uncertainty and evolving economic momentum.
Policy Pause, Performance Gaps: Markets Navigate Mixed Signals
Central banks hold fire as inflation cools but stays above target.
Ireland shines, Portugal stumbles in a month of sharp regional contrasts.
Healthcare leads, tech lags as sector trends shift.
The Balanced portfolio Index held up well, returning -0.21% for the month amid a wider selloff in the tech sector.
Inflation and Interest Rates.
UK.
In November 2025, the Bank of England held its base rate steady at 4.00%, following five cuts since August 2024 from a peak of 5.25%. Policymakers narrowly voted to keep rates unchanged, with markets anticipating a possible cut in December. Meanwhile, UK inflation continued to ease but remained above target: headline CPI fell to 3.60% in October, down from 3.80% in September, driven by lower food and retail prices, though still well above the Bank’s 2.00% goal. Expectations for inflation dropped to 3.70%, reflecting improving sentiment but persistent cost pressures.
U.S. Federal Reserve.
In November 2025, the Federal Reserve kept its benchmark rate in the 4.25%–4.50% range, following earlier cuts in September and October as part of a gradual easing cycle. Markets expect further reductions in 2026, but policymakers remain cautious amid tariff-related inflation risks. Meanwhile, headline inflation held at 3.00%, with core CPI at 3.30% year-on-year, signalling sticky price pressures despite modest monthly declines in the Fed’s preferred PCE gauge. These figures underscore the challenge of returning inflation to the 2% target while balancing growth concerns.
European Central Bank (ECB).
In November 2025, the European Central Bank kept its deposit rate at 2.00%, marking a third straight meeting without changes as policymakers balanced easing growth with inflation risks. Markets expect cuts in early 2026, but the ECB remains cautious amid mixed economic signals. Eurozone headline inflation was 2.20%, slightly up from 2.10% in October, while core inflation held at 2.40%, reflecting persistent services-driven pressures despite falling energy costs. These figures keep inflation near the ECB’s 2.00% target, reinforcing a wait-and-see stance ahead of December’s policy review.
Market performance.
In developed markets, Ireland was the standout performer in November, climbing 8.57% on robust gains in financials and technology, supported by strong domestic growth and resilient corporate earnings. Belgium followed with a 3.99% rise, driven by consumer staples and industrials, while Switzerland (+3.48%) and Canada (+3.33%) benefited from defensive sectors and energy strength. Austria rounded out the top five with a 2.75% increase.
On the downside, Portugal led the laggards, falling 5.44% amid weakness in local financials and utilities. Australia declined 4.23% as commodity-linked sectors faced headwinds from softer demand and falling prices. The Netherlands (-2.71%) and New Zealand (-1.85%) also retreated on tech and real estate weakness, while Israel slipped 1.59% amid geopolitical uncertainty and muted investor sentiment.
In Emerging Markets, MSCI Chile was the strongest performer, rising 7.95% on the back of higher copper prices and optimism around fiscal stability, which supported materials and utilities. Brazil followed with a 6.79% gain, driven by financials and consumer sectors amid easing inflation and expectations of further rate cuts.
At the other end, Saudi Arabia fell 8.84%, pressured by lower oil prices and weakness in financials, while Korea declined 8.67% as technology stocks faced global semiconductor headwinds and profit-taking.
Sector performance.
Healthcare was the strongest sector in November, gaining 7.65% as defensive positioning and robust earnings supported sentiment amid macro uncertainty. Latin America followed with a 3.71% rise, driven by commodity-linked strength and improving regional growth outlook.
On the downside, Technology & Technology Innovation fell 6.61%, pressured by profit-taking and global semiconductor weakness, while Asia Pacific Including Japan declined 4.22% as equity markets faced headwinds from slowing growth and cautious investor sentiment.
Source: FE FundInfo, 02/12/25
Summary.
Markets navigated November with a mix of stability and divergence as major central banks held rates steady amid easing inflation but persistent cost pressures. The Bank of England and ECB maintained their policy stance, while the Federal Reserve continued its gradual easing cycle, balancing growth concerns against sticky price dynamics.
Equity performance showed sharp contrasts across regions: Ireland led developed markets with an 8.57% surge, while Portugal and Australia lagged on sector-specific headwinds. In emerging markets, Chile and Brazil posted strong gains on commodity strength and improving sentiment, while Saudi Arabia and Korea fell sharply under pressure from oil weakness and technology volatility.
Sector trends highlighted defensive resilience and cyclical challenges. Healthcare outperformed with a 7.65% gain, supported by robust earnings and risk-off positioning, while Technology & Innovation declined 6.61% amid profit-taking and semiconductor softness.
For balanced portfolio investors, the outlook remains constructive. Rate stability and signs of inflation moderation provide a supportive backdrop for diversified strategies. Strong performance in healthcare and commodity-linked sectors, combined with selective regional opportunities, reinforces the benefits of maintaining broad exposure across asset classes. With central banks signalling a cautious but gradual path towards easing, portfolios positioned for resilience and growth stand to benefit from improving sentiment and sector rotation.
Sources.
The ‘Balanced portfolio benchmark’ is the UT Mixed Investment 20-60% Shares Sector.
When will UK interest rates fall again?, by Kevin Peachey - Cost of living correspondent, Yahoo Finance/BBC News, 19th November 2025
Global markets rally as Fed signals gradual easing, Reuters, 30th November 2025
