On 30 December, 2016 – Most global markets ended the year in positive territory
The US’ Dow Jones Industrial Average and the UK’s FTSE Index registered their biggest gains since 2013. Asian markets also rose, though China underperformed.
United States
US stocks fell on Friday; the final trading day of the year, as investors took profits on some of 2016’s best performing sectors. However, major indexes posted strong annual gains and the Dow Jones Industrial Average closed out its best year since 2013.
The day’s losses were broad, with all but two of the 11 primary S&P 500 sectors ending lower. However, trading volume was light. Markets will be closed for New Year’s Day holiday on Monday.
The S&P 500 declined 0.5% on the day, but finished with a yearly gain of more than 9.5%. The Dow Jones Industrial Average fell 0.3% on Friday, but advanced more than 13% on the year. The Nasdaq Composite slid 0.9% on the day, but saw a 7.5% annual rise.
On the economic data front, the December Chicago purchasing managers index fell 3 points to 54.6.
Europe
European stock markets rose on Friday, trimming their losses for the year, but ending December with the biggest monthly gain since October 2015. The Stoxx Europe 600 index gained 0.3% on the day, but closed the year 1.2% lower, its first yearly loss since 2011. Germany’s DAX 30 index rose 0.3%, extending its yearly gain to 6.9%. France’s CAC 40 index climbed 0.5% on the day, advancing 4.9% on the year.
The UK’s FTSE 100 index rose 0.3% on the day to close at a record high. For the year, it surged 14%, marking its strongest performance since 2013 and registering the biggest gain among the major European benchmarks.
Asia Pacific
Asia’s equity markets ended 2016 slightly higher, despite a number of unexpected global events that had threatened to throw markets into disarray. China was the main exception, however, plummeting 12.3% for the year, as regulators cracked down on leveraged purchases of stocks by insurance companies and as the yuan fell about 6.5% against the US dollar for the year.
Meanwhile, Australia’s S&P/ASX 200 rose 7%, while both Japan’s Nikkei Stock Average and Hong Kong’s Hang Seng Index added 0.4%. Singapore’s Straits Times Index rose 0.2% for the year.
Among smaller markets, particularly those in Southeast Asia, performance was more mixed, with benchmark indexes in Malaysia, Vietnam and the Philippines ending the year in the red. Thailand’s benchmark SET 50 index outperformed, gaining 18.6% for the year, even though there was a brief pause following the death of the country’s long-reigning monarch in October.
Looking Forward
The following indicators will be released this week…
Asia
January 4
Japan
Nikkei Manufacturing Purchasing Managers’ Index (Final) (December)
China
Westpac MNI Consumer Sentiment (December)
January 5
Japan
Nikkei Services Purchasing Managers’ Index (December)
Europe
January 2
Eurozone
Markit Manufacturing Purchasing Managers’ Index Final (December)
January 4
Eurozone
Markit Composite Purchasing Managers’ Index Final (December)
Core Inflation Rate Year-over-Year Flash (December)
January 5
Eurozone
Retail Purchasing Managers’ Index (December)
January 6
Eurozone
Business Confidence (December)
Consumer Confidence Final (December)
Economic Sentiment (December)
Americas
January 3
United States
Markit Manufacturing Purchasing Managers’ Index Final (December)
ISM Manufacturing Purchasing Managers’ Index (December)
January 5
United States
Federal Open Market Committee Minutes
Markit Composite Purchasing Managers’ Index Final (December)
January 6
United States
Non Farm Payrolls (December)
Global Stock Markets
*Note — all releases are listed in local time.
Source: Fidelity
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