Money management executives are hoping Santa will deliver gifts yet again this year and bring a stock market rally to round out 2017.
The so-called Santa Claus rally, when equity markets surge during the festive period, has seen December returns soar over other months in the past, data show. The FTSE 100 has been more likely to rise in December than any other month, according to a new analysis of three decades of data by money manager Schroders.
The FTSE 100 gained an average 2.4% in December over the past 30 years, the highest average gain of any month. In comparison, June has been the worst month, with the stock market index falling an average of 1%, the money manager said in a statement accompanying its data, released this month.
December has provided a stock market rise for the FTSE 100 83.3% of the time since 1987. Also on the nice list is October, with the FTSE 100 rising 74.2% of the time.
On the naughty list with June was September, when the market has fallen more than it has risen, added Schroders.
And it's not just the U.K. stock market that gets a visit from Santa: Schroders found world equity markets were more likely to rise in December. Measurements across the FTSE 100, S&P 500, MSCI World and Eurostoxx 50 indexes showed a rise 79.2% of the time and an average 2.1% gain since 1987.