World stock indices reversed course in November as credit crisis concerns returned to the forefront amid announcements of widening losses at major world banks. Employment data throughout the world continued to provide moderate support, however declining consumer and investor confidence led to significant losses in the S&P500, Hang Seng, Nikkei, DAX Index.
World bond and money markets continued their steady gains as expectations of future rate cuts rose on U.S. housing softness and Fed dialogue suggesting further weakness in the U.S. economy. The Euro advanced to record highs as the ECB maintained its policy stance. Emerging markets experienced short term weakness as global economic uncertainty spread.
Energy markets finished lower amid highly volatile action after moving to new all time peaks earlier in the month. Global economic uncertainty and relatively mild weather overcame strong overall demand projections to lead values lower. Gold finished lower as declining energy markets limited its value as an inflation hedge. Base metals moved sharply lower amid a short term decline in Chinese demand and persistent U.S. housing weakness. Grain markets rallied late on strong export demand tied to the historically low U.S. Dollar, while meats fell on expectations for subpar holiday demand.