FTSE Index Derivatives

December 2024 highlighted U.K. equities' resilience amid macroeconomic headwinds.

The FTSE 100 Index, heavily weighted towards large-cap multinationals, was down 1.4% in December yet ended the year up 5.8%, its fourth consecutive yearly increase. This year’s performance of both the banking sector, benefiting from higher interest rates, and defensive sectors, like consumer staples, further highlighted the index appeal for income-focused investors.

The FTSE 250 Index, reflecting mid-cap domestic companies, dipped 0.72% in December but gained 4.6% annually, supported by the performance in both the industrial and technology sectors.

Despite retail sector challenges and a weaker PMI, both FTSE 100 and FTSE 250 indices showed resilience, striking a balance between global stability and domestic growth potential, marking them attractive for diversified investment strategies.

MSCI Index Derivatives

Global equities declined in December, as reflected by the MSCI ACWI PR USD Index, which was down 2.5% for the month, yet ended the year up 15.4%, after returning 20% in 2023. The monthly decline was broad based, driven by hawkish U.S. Federal Reserve rate projections that weighed on investor sentiment.

Last month, the MSCI EM Index PR USD Index declined 0.3%, reflecting relative stability in certain regions, despite continued challenges in China and geopolitical tensions in Eastern Europe. In contrast, the MSCI EAFE PR USD Index fell 2.3%, due to concerns over sluggish economic growth and uncertainty regarding the European Central Bank’s policy direction. European equities, the largest EAFE component, faced added pressure as the MSCI Europe PR USD Index declined 2.5%, hurt by dollar strength, inflation concerns and political risks, including trade tariff warnings.

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As of Dec 31, 2024

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Notable updates

As a result of MSCI Inc. implementing a change to the naming convention of their MSCI ESG Indexes, effective start of trading February 3, ICE Futures U.S will amend the names of its MSCI ESG Leaders futures. Notice Link

For detailed information on MSCI's index name changes, please refer to their official announcement: https://www.msci.com/documents/1296102/07b2fc9c-1d27-8818-1c6c-e2ef07fedffe

Micro NYSE FANG+ Index Futures

The NYSE FANG+ Index exhibited heightened volitivity to end the year, closing around 5.5% down from its peak in the month.

Sector rotation from high-growth technology stocks to more value sectors contributed to this mid-month decline, reflecting the broader market's concerns about expensive tech valuations and the impact of rising bond yields.

Despite the December volatility, the NYSE FANG+ Index achieved a substantial annual return of 50.52% for 2024. This performance has been largely driven by the strong performance of its constituent companies, notably NVIDIA and Meta Platforms. NVIDIA, for instance, achieved a cumulative gross total return exceeding 761% from December 30, 2022, to July 5, 2024, contributing nearly a quarter of the index's cumulative return during that period.

Micro NYSE FANG+ Futures: 2024 ADV reached 8,187 lots, up 21% vs. 2023. Open interest closed the month at a year-end record of 15,692 lots ($1.029B notional), and up 165% vs. December 31, 2023.

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