FTSE 100 suffers worst year in a decade, falling 12.5% in 2018 – business live

Rolling coverage of the final trading day of 2018, as investors around the globe nurse heavy losses

  • Latest: FTSE 100 fell 12.5% this year
  • Introduction: Worst year for shares in a decade
  • China has fallen 25% this year!
  • How commodities have struggled this year
  • Trump claims ‘big progress’ in trade talks

3.22pm GMT

After 2018’s losses, what might next year have in store for investors, and everyone else?

Andrew Milligan, Head of Global Strategy at Aberdeen Standard Investments, believes 2019 will be a “middling year from an economic point of view”.

“The world economy is not in a bad place at the start of 2019. We’ve talked of the slowdown in Europe and China, but it’s still trend growth. America is above trend and will decelerate during the course of this year, but there are very few signs, currently, of any major economic problems in the immediate future.

The oil price is lower, which helps. The Fed has hinted that it will not be as aggressive. Inflation is not a concern. There are debt issues out there. China remains the most worrying one.

“Confidence and sentiment do matter. One can just see people being more cautious about spending and investing and the economies, just as we’ve seen in Europe this year, slow and slow. That would be an adverse headwind.”

2.24pm GMT

The US stock market may manage a last-ditch rally, after Donald Trump tweeted that he was making progress over trade talks with China.

US stock markets set for gain on US-China trade progress https://t.co/Ac9Tn7kpOW pic.twitter.com/h42I4zjf2C

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