Before the New Year, the U.S. dollar and oil prices fell, global stock markets closed near record highs Reuters

© Reuters. File photo: On November 8, 2021, a trader works in a booth on the New York Stock Exchange (NYSE) in New York City, USA. REUTERS/Brendan McDermid

Authors: Katanga Johnson and Tommy Wilkes

Washington/London (Reuters)-Due to falling oil prices and the U.S. dollar falling against most major currencies, there was little change in global stock markets on Thursday, although it was the best year since 2015, with a 6.7% increase.

Several markets in Asia and Europe were closed on Friday, trading volume was light, and most markets had no direction.

Fell by 0.07%. The index soared by 17% in 2021, which is the third consecutive year of double-digit gains.

Analysts said that in the face of the challenges related to the pandemic, the US economy has proved resilient, and many people expect the global economy to continue to expand at a rate much higher than the trend.

After the initial plunge in December, as investors were convinced that the economy could cope with the surge in Omicron coronavirus cases, world stocks rebounded during the holiday period and are returning to historical highs.

“As far as COVID is concerned, for now, market participants may still be willing to increase their risk exposure and may push the stock index to a new high, because despite the record high number of infections around the world, many countries around the world have not No new lockdown measures have been implemented. Globally in recent days,” said Charalambos Pissouros, head of research at the Cyprus-based brokerage firm JFD Group.

It fell 0.418% on Friday.

On Wall Street, Friday’s New Year’s Eve trading closed close to historical highs.

The three major U.S. stock indexes all recorded monthly, quarterly and annual gains, the largest three-year gain since 1999.

Investors have maintained their expectations for the resilience of the global recovery in 2022 and the prospect of further gains if funds remain cheap and corporate profitability remains high.

This year’s “recovery of everything” has witnessed the central bank’s cheap cash, government stimulus measures, and a strong economic rebound from the pandemic, making it difficult for people not to profit from soaring asset prices.

As the record profit data of large technology companies excited investors, the US stock market drove a global rebound. This week it hit a record high.

Commodity prices have also experienced a strong year, and as the economy reopens, supply is often unable to meet the jump in demand.

However, on the last day of the year, the futures settlement price fell by US$1.75, or 2.2%, to US$77.78 per barrel, while the US West Texas Intermediate (WTI) crude oil futures fell by US$1.78, or 2.31%, to 75.21 per barrel. Dollar.

However, driven by the global economic recovery and producer restraint, the prices of Brent crude oil and WTI crude oil both increased by more than 50% in 2021.

As the demand for aviation fuel picks up, global oil prices are expected to rise further next year.

GRAPHIC-Global Asset Market Performance in 2021

https://fingfx.thomsonreuters.com/gfx/mkt/lgpdwjwqlvo/global%20asset%20price%20ytd.PNG

An official survey revealed that China’s factory activity accelerated unexpectedly in December, but by a small amount, and analysts expect more economic headwinds in the short term.

The Chinese stock market, one of the few Asian markets that opened on Friday, closed higher, ending a difficult year with highs. The blue-chip CSI 300 Index has fallen by 5.2% this year, its worst annual performance in three years.

Lira backwards

The euro has fallen by 7.4% this year as investors bet that the European Central Bank will end the stimulus measures during the pandemic more slowly than rival central banks. The euro rose 0.1% to above $1.13.

The yen-dollar exchange rate fell by more than 11% against the dollar in 2021, and fell to 115.1 yen against the dollar, not far from the four-year low hit this month.

The pan-European index fell 0.19%.

Since the beginning of this year, the pound exchange rate against the US dollar has still fallen, but the exchange rate against the euro is expected to hit its best year since 2014. It rose to a high of 83.69 pence on Friday, the highest level since February 2020.

Elsewhere in the currency market, the biggest currency loser so far in 2021-fell for the fifth consecutive day.

This week’s decline eroded the lira’s sharp rise a week ago. Investors are worried about the country’s unorthodox monetary policy and rising inflation, and that President Tayyip Erdogan’s plan to protect lira deposits announced this month will not work.

Most government bond markets are closed.

It rose 0.8% to US$1,829.04 per ounce.

It finally fell by 2.37%.

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