European equity markets slumped in December on the back of lingering geopolitical concerns for Brexit, Italian politics and trade conflict, and a slowdown in European business confidence. Equity markets around the globe also suffered large losses in December with additional concerns for the Federal Reserve’s monetary tightening policy and slower growth in the Chinese economy. Global and Sterling corporate bond returns both gained more than 1% in December. Realised volatility across the globe rose sharply again in December as equity markets saw heavy losses. The US and European market saw their volatilities breaching the 30% and 20% levels during the month, setting the record for the year.