European equity markets continued their positive performance in December as a “phase one” trade deal agreement was reached between the US and China. Emerging markets outperformed their developed economies counterparts in December with the MSCI index yielding an impressive 7.5% for the month. The British government bond index was down for the third consecutive month, losing 1.5%. GBP Solvency II risk-free rates increased at all terms in December. CPI inflation remained unchanged in November. Realised volatility in December was higher than the previous month, but still remains materially lower than historical averages. The volatility risk premium for the FTSE 100 decreased in December, ending the month at 1.4%.