Equities continued inching higher, as major central banks remain supportive, economic data encouraged and the US/China trade deal appeared to gain momentum. US and European equities both gained around 3% while within EM, India +2%, Brazil +1% but China -2%. Despite 10 year US Treasuries yield swinging 0.45% intra-month, they ended 0.08% higher at 1.78%. Gold dropped 3% ($1,464) and Brent crude added 1.5% ($60.5). In the commodities space, steel, copper and aluminum rose 1-3% while ethylene, Henry Hub gas and urea were among the commodity losers, all falling around 10%.
In November, Gulf equities were led by Kuwait (+5%) which more than recovered weakness during the summer. This was followed by Saudi Arabia (+1.5%) as it too bounced from October’s weakness. Dubai (-2.5%), Abu Dhabi (-1.5%) and Qatar (-0.4%) were all weak. Fixed income issuance from the region was $2.8bn during November of which $2.05bn was sukuk (Arabian Centres, DIB, Masraf Al Rayan and QIIB). Despite a rise in US Treasury yields, sukuk gained 0.46% helped by tighter spreads vs Treasuries.