November proved to be a volatile month in general. A new Covid variant (Omicron) was discovered, prompting global growth concerns and weaker equity markets. Information is limited about its potency and efficacy of existing vaccines, but symptoms appear milder and economies have swiftly reintroduced preventative measures. Mainland Europe continues to struggle with its 4th Covid wave, with hospitalisations reaching concerning levels. All the while inflation continues to surge upwards, driven by energy prices rising and supply shortages. Central banks had appeared to be preparing to tighten monetary policy but the latest Covid news may have pushed that out further which prompted a decrease in higher quality bond yields, raising bond prices.

 

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