Global stocks close in on best-ever month

Global stocks close in on best-ever month

MSCI’s index of developed and emerging equity markets is up almost 13% in November

Global stocks are on track for their best month on record, propelled by a series of Covid-19 vaccine breakthroughs and optimism over Joe Biden’s victory in the US presidential election.

The rally reflects investors’ growing eagerness to buy into risky assets, encouraged by progress in the development of Covid-19 vaccines at pharmaceutical groups Pfizer-BioNTech, Moderna and AstraZeneca.

MSCI’s index of developed and emerging markets has risen 12.78 per cent this month and set another all-time high on Friday, rising 0.1 per cent in US holiday-thinned trading.

The hunger for stocks has been reflected in investment flows, with $89bn flooding into equity funds over three weeks in November, a record haul, according to analysts at Bank of America.

“It’s incredible, absolutely stunning,” said Fahad Kamal, chief market strategist at Kleinwort Hambros. The month’s gains are “all linked back to one crucial factor and that’s the vaccine”.