Risk assets fared well during the month of December as investors looked through grim Covid-19 infection and death rates globally as well as the reintroduction of further restrictions on social mixing throughout Europe. Vaccine approvals in several countries increased optimism feeding a general risk-on environment that benefitted the broader market and emerging markets in particular. This was accentuated by a weakening US dollar as markets factored in stimulus measures and a democratic clean sweep. A Brexit deal was finally reached towards the end of December providing some clarity to an otherwise messy situation that has plagued the UK for several years. US congress agreed on extending pandemic relief measures after much deliberation which further supported markets in the month.

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