Most markets in Europe traded higher in early December while the European Central Bank held its rates steady as growth for the eurozone showed signs of picking up.

At the same time, UK Prime Minister Teresa May faces a complicated brexit process. How should the UK, and especially London as a financial center, face a coming US Fed rate hike in uncertain circumstances?

Analysts say it is almost certain that we will see a rate hike this month. The US Fed had held still since its last rate increase last year. They say it is not likely that the Fed will do the same this time.

The British pound still trades quite high against the US dollar. Analysts say the UK and the European markets have made ample preparations for the hike. Now what would do the most to move markets are upcoming political events.

Unlike this time last year, there is a high level of confidence among experts that a rate hike is coming. But 2016 is also a year with many black swan surprises: brexit, Donald Trump elected US president and Mario Renzi's resignation as Italy's prime minister. Maybe it is still too soon to be sure about the result of this major financial event this year.