The highlights:
- The US Federal Reserve (Fed) delivered another 0.25% interest rate cut in December but surprised markets by reducing the number of expected rate cuts in 2025.
- International shares closed out a stellar year with a more mixed month in December. A weaker Australian dollar boosted returns from unhedged exposure but was a drag for hedged exposure.
- Australian shares rounded off a strong year of double-digit gains with a softer finish, as global market volatility and weakness in the materials sector weighed on broader market returns.
- Global and local fixed interest markets faced challenges as rising bond yields and inflation concerns took their toll.
Read the update here: December Monthly Market Update