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Overview of Overall Markets

Global markets delivered mixed results on November 21, 2024. While US and European indices climbed on optimism surrounding economic growth and sector rotation, Asian markets struggled under the weight of geopolitical tensions. Investors balanced opportunities in cyclical stocks with caution over lingering macroeconomic risks.

US: Cyclical Stocks Drive Gains

US markets rallied as investors moved into cyclical stocks set to benefit from economic momentum. The Dow Jones Industrial Average $DJIA(.DJI)$  surged 1.0%, adding 461.88 points to close at 43,870.35, while the S&P 500 $S&P 500(.SPX)$  rose 0.5%, gaining 31.60 points to end at 5,948.71. However, technology stocks showed limited participation, leading to a modest 0.1% gain in the Nasdaq Composite $NASDAQ(.IXIC)$  .

Europe: Energy and Tech Lead Recovery

European markets ended their prolonged losing streak, supported by strength in energy and tech sectors. Germany’s DAX and the FTSE 100 climbed 0.7%, while France’s CAC 40 added 0.2%. The broad rally reflected renewed optimism amid sector-specific opportunities despite ongoing economic challenges in the region.

Asia: Geopolitical Tensions Weigh on Sentiment

Asian markets faced headwinds as geopolitical uncertainty stemming from the escalating Ukraine conflict dampened risk appetite. Tokyo's Nikkei 225 fell 0.8%, the Hang Seng Index $HSI(HSI)$  dropped 0.5%, while the Shanghai Composite eked out a 0.1% gain, driven by selective buying in defensive sectors.

Outlook and Insights

Looking ahead, US markets may continue benefiting from sector rotation into economically sensitive stocks as growth accelerates. European markets could see further stabilization if the energy and tech rally persists, while Asia remains vulnerable to geopolitical risks and softening investor confidence.

Investors should closely monitor global macroeconomic indicators, particularly those tied to geopolitical developments and central bank policies, while adopting a selective approach across regions and sectors. Diversification remains key to navigating these mixed market conditions.

Conclusion

Global equities demonstrated resilience, with US and European markets rebounding strongly and offsetting Asian market declines. While the near-term outlook for cyclicals is positive, geopolitical concerns underscore the need for cautious, diversified strategies to capture opportunities while managing risks.