December market update – global equities ended 2020 in a positive fashion

Global equity markets ended 2020 at record highs, supported by news of the post-Brexit trade deal, fresh Covid-19 stimulus in the US and hopes that the vaccine roll-out would help end the latest spike in cases.

In this edition

• Against this backdrop, Asian and Emerging Market equities outperformed developed equity markets over the month, with the latest economic data highlighting a pick-up in activity.
• The risk-on sentiment was reflected across asset class returns, with oil prices continuing to rally, while the more defensive government bonds were the main laggards over the month.
• Government bonds and gold delivered positive returns overall in 2020, highlighting the economic uncertainty resulting from the pandemic and subsequent policy responses. 

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