In Europe, equities rallied on hopes that the region would benefit from a stronger US economy and from the weaker EUR against the USD and, last but not least, from a supportive ECB policy.
There was also some progress in stabilising the Italian banking sector, which had been a source of concern for investors. On 8 December, the European Central Bank Governing Council decided to add more than half a trillion euros to its bond purchase program and extend it by nine months until at least the end of 2017.
ECB chief Mario Draghi declared that this supportive programme will not end any time soon.
As we anticipated last month, cyclicals like consumer discretionary and energy were the winning sectors in Europe over December
Cyclical bias and rising interest rates remain strong drivers for our tactical positioning: