Christmas Eve 2018 is fourth-worst ever for FTSE 100

The FTSE 100 had only fallen on Christmas Eve eight times since the index was established 35 years ago. Lee Wild explains why 2018 made it nine, and names the winners and losers.

Well, the stockmarket is certainly misbehaving, so perhaps it's no surprise that the Santa rally hasn't been delivered this year.

There's no festive cheer, despite having only hours to go before the big day. In fact, after a 35-point drop to 6,685.99 on Monday, this Christmas Eve has been the fourth-worst ever for the FTSE 100.

The FTSE 100 has fallen only nine times on Christmas Eve since 1984

Source: interactive investor

Another disappointing decline this Christmas Eve was triggered by large-scale selling in the US Friday, when the Nasdaq plunged 3%, S&P 500 2% and the Dow Jones 1.8%. 

It's the usual catalysts behind it – fears over the US trade war with China, slowing US growth and Federal Reserve interest rate strategy. A US government shutdown is nothing new, but it's still a short-term issue that markets could rather do without.

There was hope mid-morning as US futures prices traded higher. The move was driven largely by reports that China's Ministry of Commerce is speaking of "new progress" made in talks with the US. If both superpowers do settle their feud in January - a US increase in tariffs on $200 billion of Chinese goods is delayed while talks take place – markets will go higher.

However, by the time London shut for Christmas at 12.30pm, Dow Jones futures were indicating a 155-point drop for Wall Street on Monday.

Source: TradingView (*) Past performance is not a guide to future performance

For the UK, Brexit looms large, and investors will be nervous ahead of a vote by MPs next month on Theresa May's Brexit plan. Currently, the FTSE 100 is down 4.2% in December and the AIM All-Share 9.1%.

• UK stockmarket outlook: Brexit, bargains and two income stars
• FTSE 100's 10 biggest winners and losers of 2018
• New poll: Here's where you think the FTSE 100 will end 2019

The FTSE 100's biggest risers featured the news boys promoted during this month's FTSE reshuffle – Spirax-Sarco Engineering jumped 2.9% and insurer Hiscox 1.6%. Interesting to see some of the utilities among Christmas Eve's biggest losers – United Utilities and Severn Trent are down 4.9% and 2.9% respectively. 

Some big names are struggling too. High street behemoth Next fell 2.3% and BT Group 2.2%. Lloyds Banking Group clung desperately to ground north of 50p. Trading as low as 50.29p Monday, the lender's share price has not fallen below 50p since July 2016. 

Source: TradingView (*) Past performance is not a guide to future performance

• Why Lloyds Banking shares make this top 10
• Chart of the Week: The verdict on Lloyds Banking shares

There is better news on the junior AIM market, however, where shares in Victoria Oil & Gas have rocketed more than 50%.

In a downturn, small-caps typically get sold off more than large-caps as investors prefer holding onto the scale of blue-chip earnings potential. Smaller company earnings – if they make money at all - also tend to be more vulnerable.

And Victoria has had an awful year, with the share price plunging last week to multi-year lows. But bosses have received their Christmas present early!

Gaz du Cameroun, a unit of the Cameroon-based gas and condensate producer and distributor, has signed a three-year deal with grid power provider Eneo Cameroon to resume gas supply to the Logbaba 30 megawatt power station in Douala. 

Merry Christmas to all our readers and we wish you a prosperous 2019!

*Horizontal lines on charts represent levels of previous technical support and resistance. Trendlines are marked in red.