December Monthly Market Review

An excerpt from our December Monthly Market Review:

Global equity markets rose in December to cap another year of double-digit gains, the third in succession. The supposedly limitless potential of AI remained the focus of speculation and a main market driver. In addition, strong corporate earnings, resilient economic performance, easing monetary policy, and the prospect of considerable fiscal stimulus ahead also contributed to the U.S. equity market’s solid performance, despite the uncertainty created by sharp swings in trade policy. U.S. Treasury prices fell in December, as longer-term yields rose. Nevertheless, yields across the maturity spectrum remained below their levels at the start of the year. Investment grade credit markets also declined in December, but high yield bonds posted further gains. Credit spreads across all ratings remain quite tight. The U.S. dollar fell in December against major currencies, bringing its annual decline to nearly 10%. Gold prices, in contrast, soared, rising 2% in December and 64% for the year. Plagued by oversupply, oil prices fell in December and closed the year down 19.9%.

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