December market update – a full year of positive US equity returns

Accommodative monetary policy and solid global growth data continued to provide a positive environment for equity market returns in December. In developed markets, the S&P 500 tallied up a record of 14 successive positive months and in the process made 2017 the first calendar year where positive returns were recorded every month.

What happened in the markets?

• Closer to home, UK equities rebounded strongly after a weaker month in November, while European equities remained subdued against a stronger euro and ongoing political challenges

• Commodity markets, in particular energy prices, ended 2017 strongly following the announcement that supply constraints would be extended in 2018. Prices were also supported by another weak month for the US dollar, despite the Federal Reserve’s decision to hike rates, as expected
• UK corporate bonds and gilts were the standout performers in fixed income markets

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