December was a mixed but relatively calm end to the year for global markets. In the final week of the month, equities softened slightly after a strong run earlier in the quarter. The MSCI All Country World Index of global equities ended December down -0.5%, although it still delivered a positive return of +3.4% over the final quarter of the year.
Regional performance diverged meaningfully. UK equities performed well in December, with the FTSE All Share rising +2.2% over the month, supported by easing inflation, improving interest rate expectations, and relatively attractive valuations. European equities also delivered solid gains (+2.4%), driven by strength in value-oriented sectors such as financials and industrials.
US equities were weaker, with the S&P 500 down -1.5% over the month. Large technology stocks lagged as investors reassessed valuations and responded to modestly higher bond yields. Emerging markets had a more positive December, rising +1.5%, supported by strength across Asia, particularly Taiwan.
Bond markets were broadly stable. Global government bonds were slightly weaker, while corporate bond markets held up better, reflecting steady economic data and easing inflation pressures. Shorter-dated bonds and higher-yielding areas continued to provide more resilient returns than long-duration government bonds.
Within Real Assets, commodity indices declined modestly in December despite a remarkable surge in precious metals such as gold and silver. Overall, December reinforced the importance of diversification, with returns driven by regional and asset class differences rather than broad market moves. Looking to the new year, and while acknowledging that the future is inherently unpredictable, we think it is entirely reasonable to think that investors will continue to benefit from significant global diversification in the years to come.
All performance figures are stated in Sterling terms, unless otherwise specified.
Any opinions stated are honestly held but are not guaranteed and should not be relied upon.
The information contained in this material is for information only and is not to be regarded as an offer to buy or sell, or the solicitation of any offer to buy or sell, any investments or products.
All the data contained in the communication is believed to be reliable but may be inaccurate or incomplete.
Home / News / Market commentary / YOU AM market commentary: December
YOU AM market commentary: December
December was a mixed but relatively calm end to the year for global markets. In the final week of the month, equities softened slightly after a strong run earlier in the quarter. The MSCI All Country World Index of global equities ended December down -0.5%, although it still delivered a positive return of +3.4% over the final quarter of the year.
Regional performance diverged meaningfully. UK equities performed well in December, with the FTSE All Share rising +2.2% over the month, supported by easing inflation, improving interest rate expectations, and relatively attractive valuations. European equities also delivered solid gains (+2.4%), driven by strength in value-oriented sectors such as financials and industrials.
US equities were weaker, with the S&P 500 down -1.5% over the month. Large technology stocks lagged as investors reassessed valuations and responded to modestly higher bond yields. Emerging markets had a more positive December, rising +1.5%, supported by strength across Asia, particularly Taiwan.
Bond markets were broadly stable. Global government bonds were slightly weaker, while corporate bond markets held up better, reflecting steady economic data and easing inflation pressures. Shorter-dated bonds and higher-yielding areas continued to provide more resilient returns than long-duration government bonds.
Within Real Assets, commodity indices declined modestly in December despite a remarkable surge in precious metals such as gold and silver. Overall, December reinforced the importance of diversification, with returns driven by regional and asset class differences rather than broad market moves. Looking to the new year, and while acknowledging that the future is inherently unpredictable, we think it is entirely reasonable to think that investors will continue to benefit from significant global diversification in the years to come.
All performance figures are stated in Sterling terms, unless otherwise specified.
Any opinions stated are honestly held but are not guaranteed and should not be relied upon.
The information contained in this material is for information only and is not to be regarded as an offer to buy or sell, or the solicitation of any offer to buy or sell, any investments or products.
All the data contained in the communication is believed to be reliable but may be inaccurate or incomplete.
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