Markets ended 2018 in negative territory with global growth fears and geopolitical uncertainty weighing on investor sentiment. Global equities were the notable underperformers in December, highlighting the risk-off environment, with Santa failing to deliver a much needed seasonal rally for investors to end what was a volatile year overall.
What happened in the markets?
- Unsurprisingly in local currency and total return terms, it was the more defensive parts of the market that outperformed, such as government bonds and gold
- US and Japanese equities were amongst the worst performing asset classes against a stronger yen and a more challenging outlook for growth and trade
- Brexit uncertainty continued to dominate investor sentiment in the UK and the headlines ahead of March’s deadline, while signals of slowing growth in the Eurozone and a range of political issues across the continent weighed on European equity markets
This article was previously published on Tilney prior to the launch of Evelyn Partners.