26 Nov 2025 - Glenmore Asset Management - Market Commentary

Global equity markets continued their strong run in October. US indices led the charge, buoyed by sustained strength in the 'Magnificent Seven', which saw the NASDAQ and S&P 500 rise +4.7% and 2.3%, respectively. This included Nvidia's market cap surpassing the US$5 trillion valuation. Interestingly, approximately 20% of the S&P 500's YTD increase has been attributable to Nvidia. Outside of the US, the FTSE and Euro Stoxx 50 followed suit, rising +3.9% and 2.4%, respectively.

Domestic markets were more muted than their international counterparts, with the ASX All Ordinaries Accumulation index rising +0.5%. During the month, inflation figures for the September 2025 quarter came in at 3.0% (YoY) vs 2.7% as at the end of the June 2025 quarter. These results were at the top-end of the RBA's target band (2-3%) and higher than expectations. As a result, financial markets have further tempered their rate cut expectations and are now factoring in less than 1 additional rate cut over the next 12 months.

In bond markets, the US 10-year bond yield declined -7 basis points (bp) to 4.08%, whilst its Australian counterpart was largely unchanged at 4.30%. The Australian dollar declined marginally, closing at US$0.655, implying a decrease of 0.7 cents.