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December market update – markets ended 2018 in negative territory

Chief Investment Officer Chris Godding and Senior Research Analyst Louie French give their commentary on what happened in the markets and global economies over the month of December 2018.

Centre Chris Godding
11 January 2019

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


Read our market commentary


We hope you have found this update helpful. Please do get in touch on 020 7189 2400 or email if you have any queries or would like more information.


Important information

The value of investments, and the income derived from them, can go down as well as up and you can get back less than you originally invested. This is not a personal recommendation or advice to invest. Past performance is not a guide to future performance. Funds may carry different levels of risk depending on the industry sector(s) in which they invest. You should ensure that you understand the nature of any fund before you invest in it.