December proved a difficult month for global equities with many of them suffering large falls, which meant that 2018 saw falls for nearly all the leading global equity markets.

 

December 2018 Full Year 2018
FTSE 100 (UK) -3.6% -12.5%
Dow Jones 30 (US) -8.7% -5.6%
S&P 500 (US) -9.2% -6.2%
DAX (Germany) -6.2% -18.3%
Euro Stoxx 50 (Europe) -5.4% -14.3%
Nikkei 225 (Japan) -10.5% -12.1%

 

In terms of currency, £ Sterling ended December at 1.28 US Dollars. This was more or less flat against the closing figure at the end of November.

Against the Euro, £ Sterling ended December at 1.11 Euros, which was 1.3% lower than the November closing figure.

Inflation, as measured by the Consumer Prices Index including owner occupiers’ housing costs (CPIH), was 2.2% in November 2018 (this is November’s data which is reported in December). This was the same as the previous two months. The 12-month rate for the Consumer Prices Index (CPI) rate which excludes owner occupied housing costs and council tax was 2.3% in November 2018, which was down from the 2.4% in October 2018.

The Bank of England maintained interest rates at 0.75% in December following the increase in August. With inflation remaining unchanged, this means long-suffering deposit savers continue to lose money in real terms when you consider the rate of savings interest compared to the rate of inflation.

We believe a multi-asset approach aims to give you the best opportunity for the highest level of return for your stated level of risk.

Past performance is not a guide to future performance. The value of an investment and any income from it can fall as well as rise as a result of market and currency fluctuations. You may not get back the amount you originally invested.