The main event for November was the US Presidential Election outcome. It was a ‘Red Sweep’ for the Republicans, regaining control of the Senate, the House, and of course the Presidency. Stocks surged on the result as Trump is seen as ‘market friendly’.
Domestically, the RBA November meeting outcome was as expected, with the cash rate left unchanged. The statement was probably still on the hawkish side of neutral, which surprised some, with the board reiterating “whatever is necessary” to return inflation (trimmed) back to target ranges.
Towards the end of November the months long spread compression in tier 2 finally cracked, with spreads drifting wider.
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