Highlights of Global Stock Markets in 2016

Stock markets rallied to new peaks in 2016, with the Dow Jones Industrial Average being awarded as an outstanding advancer with a climb by up to 13.4 percent while hovering close to 20,000 historical level at the end of the year.

RTS Index of Russia also rallied by 52 percent in dollar denominations since the 2016 beginning.

Micex, the country’s major index denominated in rubles, increased by 27 percent. Following the win of Donald J. Trump in U.S. presidential elections, global investors swarmed Russia with hopes that the two nations’ relationship would be mended by the new president. Russia has been dependent on oil profits and benefited from the previous increase in the resource prices.

Naeem Asiam, Think Markets Chief Analyst in London, stated that oil price rebound has assisted the economy of Russia and lifted it from catastrophe.

The Merval index of Argentina rose by 45 percent in 2016 and reached an October peak as attributed by the nation’s political shifts and currency drop by 18 percent.

In January, Bovespa index of Brazil settled on a low, which was not observed since the global financial crisis in 2008. Nonetheless, the index had a reversal and rallied 39 percent.

The TSX Composite index of Toronto, Canada moved from a low in January to an advance by 17.5 percent, which is speculated to have been caused by Trump rally as well.

The All-Share index of Oslo, Norway moved upwards since the fiscal disaster in 2008. However, the index dropped as oil prices also decreased. Since then, the index recovered and had a total 2016 gain of 18 percent.

In 2016, the stock market of Indonesia experienced a lot of ups and downs, but finished the year with 15 percent rise.

The FTSE 100 index, the benchmark of London, obtained an all-time peak this year following Great Britain’s decision to leave the European Union. From the commencement of 2016, it advanced by 14.4 percent.

Besides the biggest winners of global stock markets, everyone should also not take for granted the decliners. By far, China and Italy suffered the deep losses.

In early 2016, the key indices of the world’s second largest economy lost 25 percent to 30 percent in a matter of weeks. This was followed by Chinese stock markets’ finishing the year with double-digit drops. The Shanghai Composite, China’s benchmark, settled on a 12 percent decline at the end of the year.

The FTSE MIB, the main index of Italy lost 10 percent as participants of the market became anxious on banking sector’s instability. Following are the 88 percent fall of Monte dei Paschi shares and sharp declines of major banks.

How about YOUR portfolio? Is it up or down by the end of 2016? Please comment below.

About the Author
The Stock Signals Philippines is the online news media arm of Equilyst Analytics. Inc., an SEC-registered stock market consultancy firm in the Philippines that guides Filipinos on long-term investing and short-term trading and offers mentoring services.

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