December 2024

• Global markets ended 2024 on a strong note as easing inflation, resilient economic growth and expectations for continued monetary easing supported investor confidence.
• Technology and artificial intelligence-related sectors remained dominant drivers of global equity market performance throughout the year.
• Major central banks signalled additional policy easing could occur during 2025 if inflation continued moderating.
• Bond yields declined modestly across several developed economies during the final weeks of the year.
• Emerging markets benefited from improving global liquidity conditions and stabilising Chinese growth expectations.
• Commodity prices delivered mixed performance amid balanced global demand and geopolitical risks.

Asia (ex. Japan)

Asian markets outside Japan advanced during December as improving global financial conditions and continued semiconductor demand supported investor sentiment across the region.

Chinese authorities maintained supportive policy measures aimed at stabilising the economy and property sector, while Taiwan and South Korea benefited strongly from sustained artificial intelligence-related technology investment.

Europe

European equities delivered positive performance during December as easing inflation and expectations for further European Central Bank rate cuts improved investor confidence.

Economic growth remained relatively weak across parts of the region, though declining borrowing costs and stable energy prices reduced recession concerns significantly compared with previous years.

United States

U.S. equities reached further record highs during December as strong corporate earnings, resilient economic activity and ongoing artificial intelligence investment optimism continued driving market performance.

Investors increasingly anticipated additional Federal Reserve interest rate cuts during 2025 while maintaining confidence in the broader economic outlook.

United Kingdom

UK equities advanced during December as moderating inflation and improving financial conditions supported investor sentiment heading into 2025.

Markets expected the Bank of England to continue easing monetary policy gradually during the coming year as domestic growth remained subdued but stable.

Japan

Japanese equities remained strong during December as corporate governance reforms, continued foreign investor inflows and resilient global technology demand supported market momentum.

Investors continued monitoring potential future Bank of Japan policy adjustments, though monetary conditions remained accommodative overall.

Emerging Markets

Emerging markets delivered positive performance during December as improving global liquidity conditions and stabilising Chinese growth expectations supported capital inflows.

Technology-oriented Asian economies remained key outperformers due to continued semiconductor and artificial intelligence-related investment demand.

Commodities

Commodity prices delivered mixed results during December. Oil prices remained relatively stable as global demand conditions balanced geopolitical risks and ongoing supply management efforts.

Industrial metals strengthened modestly amid improving manufacturing sentiment and Chinese stimulus expectations, while gold prices remained elevated due to declining bond yields and sustained central bank demand.