Summary - November 2025 market update

Global financial markets appeared relatively stable in November 2025, but underlying economic conditions remained fragile. Equity markets finished largely flat as enthusiasm for AI stocks cooled, while U.S. economic data increased expectations that the Federal Reserve will cut interest rates again in 2025. Global growth slowed in the third quarter, weighed down by ongoing tariffs, subdued demand, and lingering inflation pressures, particularly in manufacturing.

In Canada, the S&P/TSX Composite reached a record high, led by materials and consumer staples. Prime Minister Mark Carney’s first federal budget focused on boosting economic competitiveness and reducing reliance on the U.S. through major infrastructure and resource projects. While the budget significantly increases the federal deficit, Canada’s economy showed resilience, growing at a 2.6% annualized pace in Q3, supported by housing activity, government investment, and rising exports, though consumer spending weakened.

The U.S. government emerged from the longest shutdown in its history, easing political uncertainty but delaying key economic data. Released figures pointed to a cooling labour market and slower consumer spending, reinforcing market expectations of another Federal Reserve rate cut before year-end.

In the U.K., economic growth slowed sharply ahead of a new budget, affected by tight financial conditions and a major cybersecurity disruption in the auto sector. Growth remained weak, consumer spending softened, and the government announced tax increases to support higher public spending amid rising deficits.

Japan’s economy contracted in the third quarter as U.S. tariffs and weaker global demand hurt exports and household consumption. Manufacturing activity remained weak, prompting the government to prepare stimulus measures, while the Bank of Japan considered the possibility of another rate hike.

Across asset classes, Canadian equities outperformed, U.S. stocks posted modest gains, and emerging markets lagged. Bond returns were positive, oil prices fell, and precious metals surged, with gold rising sharply and silver reaching record highs—reflecting ongoing uncertainty beneath otherwise calm market conditions.

To read the full update, including data tables and detailed commentary, visit the full article on Canada Life: Monthly Market Update – November 2025.