December was a poor month for global equity markets, with most major indices finishing the month down. The S&P 500 and FTSE 100 fell by 2.4% and 1.3%, respectively, measured in their local currencies. Mixed economic signals aided this drop, coupled with uncertainty over US trade policies affecting markets abroad. The NASDAQ and Euro STOXX 50 saw positive returns of 0.6% and 1.9%, respectively, also measured in their local currencies. In fixed income markets, US and UK 10-year bond yields rose by 40 and 33 basis points, respectively, partly due to the Federal Reserve Bank and Bank of England stances on maintaining higher interest rates to combat persistent inflation figures. Brent Crude oil prices rose 4.8% driven by supply constraints due to severe weather events and a delay in the unwinding of voluntary production cuts. Currency markets saw the pound depreciate by 1.7% against the US dollar, which had another strong month due to anticipation of the Trump administration. Against the euro, the pound appreciated 0.4%.

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