It has been a positive 2017 for the equity markets. The FTSE 100 rallied 5% in December to end the year with a double digit return. US and Japanese equities returned more than 20%, while emerging market equities increased impressively by almost 40%. £ Sterling continued its recovery from its multi-decade low against the US dollar earlier this year. Long-term GBP risk-free rates remained close to their historical low, ending the year up by no more than 10 basis points. Bond markets have not fared as well as equity markets in 2017. Global equity volatilities hit record lows in 2017 and remained below 10% for most of the year.