December 2017 - ADIFO Global Market Review

by Kevin Burrows

Global stock markets sprinted through the end of December in a near perfect year for risk assets. The S&P500 was positive on a total-return basis for all 12 months in 2017, gaining 21.8% including dividends. Fixed income performance was also positive across most sectors in December with outsized gains in emerging markets local currency bonds making up previously loss-es earlier in Q4. Commodities came back to life in 2017 buoyed by strong demand and robust global growth. With signs of inflation on the horizon, there is room for this asset class to continue to perform well going into 2018. The US dollar was mixed against major currencies in December, with losses against the Euro (-1.6%) and Chinese Renminbi (-0.9%) offset by muted gains against the Yen and Pound Sterling ( both +0.1%).