Investment update - December 2024

In December 2024, the US equity markets dropped due to the Federal Reserve's updated dot plot, indicating only two rate cuts in 2025. The S&P 500 fell by 2.5% for the month but achieved a 23.3% return for the calendar year.

In Australia, the share market had its worst monthly return of 2024, falling by 3.1%. The Reserve Bank of Australia held the cash rate at 4.35%, with a rate cut anticipated in February 2025. The labour market showed strength, but national home values declined slightly, and business confidence weakened. The Australian dollar fell to US$0.62 a depreciation of -5.0% for the month and -9.3% for the calendar year. 

Globally, the UK FTSE declined by 1.4%, while European markets finished the year on a positive note, with the December returns for German DAX rising by 1.4% and the French CAC increasing by 2.0%. The Japanese Nikkei stood out, achieving a 4.4% return for the month with markets buoyed by a weaker Yen and a surge of foreign capital inflows.

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