Weekly Market Comment – December 17th
Is Santa Claus coming to Financial markets this year?
Equity markets enter the last two weeks of 2018 gripped by fear and uncertainty. Global equities have fallen by over 5% in the first two weeks of December and the market appears to have lost hope of the traditional “Santa Claus” rally in markets occurring this year. The negativity has returned to markets in a period where it looks like the trade war tensions between US and China are thawing but there are signs of an economic slow-down emerging across the globe. The last two weeks are usually a quiet period for markets but this may not be the case this year as the market as all eyes are on a federal reserve meeting which may give clues as to the further direction for US interest rates. This has the potential to be market moving, either increasing the pain that has already occurred this month or be the catalyst for a relief “Santa Claus” rally.
– Niall Dineen
Investment Team Leader