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World Stock Markets

world stock markets in December 2022
European stocks fall

European stock markets fell Friday, as U.K. economic weakness in December added to concerns about a global recession this year. At 03:20 ET, the DAX index in Germany traded 0.4 percent lower, the CAC 40 in France dropped 0.3 percent and the FTSE 100 in the U.K. fell 0.4 percent. Economic data released earlier Friday showed that the U.K. narrowly avoided falling into a technical recession in the final quarter of 2022, as the country’s economy showed zero growth during those last three months of the year, after falling 0.3 percent in the July-September period. That said, the economy contracted sharply in December, dropping 0.5 percent on the month, suggesting that this is merely delaying the inevitable. The Bank of England forecast last week that Britain would enter a shallow but lengthy recession, starting in the first quarter of this year and lasting five quarters. On a broader note, a series of Federal Reserve policymakers have been keen this week to express their desire for further rate hikes to combat inflation, potentially causing a drastic slowdown in the world’s largest economy and major growth driver.

S&P 500 gives up gains

The S&P 500 fell Thursday, reversing intraday gains as an ongoing slip in Alphabet and fresh warnings on the economy from the bond market weighed on investor sentiment. The S&P 500 fell 0.18 percent, the Dow Jones Industrial Average fell 0.23 percent, or 77 points, the Nasdaq was down 0.15 percent. The 2-10 Treasury yield curve inverted by 85 basis points, the deepest inversion since early 1980s, triggering fresh worries about economic troubles as inversions tend to precede a recession. Worries about a recession have been belied by a strong labor market, though following jobless claims data, released Thursday, that surprised to the upside, some suggest the recent surge in layoffs will start to push claims higher later this year.

Japanese shares rise on robust corporate outlook

Japanese shares rose on Friday as investors cheered robust corporate earnings and outlook, with index heavyweight Tokyo Electron leading the charge after raising its annual profit forecast. By 0218 GMT, the Nikkei share average had risen 0.5 percent to 27,733.97. The index has gained 0.8 percent so far in the week. The broader Topix was up 0.37 percent at 1,992.27, adding 1.09 percent so far in the week. “Robust outlook of domestic firms is a strong tailwind for the market. Investors were relieved to confirm corporate performance,” said Shoichi Arisawa, general manager of the investment research department at IwaiCosmo Securities. “Still, the market has not set the direction yet. Its move is based on earnings of individual companies,” Arisawa said, adding that market gains were limited as investors awaited January U.S. consumer price inflation data due next week. Chip-making equipment maker Tokyo Electron jumped 4.5 percent after raising its full-year operating profit forecast and was the biggest boost for the Nikkei. Its peer Advantest rose 1.6 percent.

Canada stocks-tsx ends lower for second day

Canada’s main stock index fell on Thursday, pressured by declines in resource shares, as investors took their cue from lower commodity prices and losses on Wall Street. The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE ended down 81.79 points, or 0.4 percent, at 20,597.75, adding to its decline on Wednesday. “It’s one of those days where I think we’re getting dragged a bit by world markets and falling commodity prices, said Colin Cieszynski, chief market strategist at SIA Wealth Management. “It held up reasonably well all things considered.” U.S. stock indexes also fell, with the declines deeper than for the Toronto market, after an auction of 30-year bonds went poorly and overshadowed strong earnings from corporate giants like Disney and PepsiCo.

Taiwan stock market may see continued consolidation

The Taiwan stock market on Thursday wrote a finish to the two-day winning streak in which it had climbed more than 220 points or 1.5 percent. The Taiwan Stock Exchange now rests just beneath the 15,600-point plateau and it may take further damage on Friday. The global forecast for the Asian markets is mixed to lower on continuing concerns over the outlook for interest rates. The European markets were up and the U.S. bourses were down and the Asian markets figure to follow the latter lead. The TSE finished modestly lower on Thursday following losses from the cement companies and mixed performances from the financials and technology stocks. For the day, the index dipped 19.46 points or 0.12 percent to finish at 15,598.71 after trading between 15,553.84 and 15,617.34.

Saudi exchange’s growth is a key economic driver

The Saudi Exchange’s growth and development in recent years is one of the clearest barometers of the Kingdom’s economic strength. The largest exchange in the Middle East – and the ninth largest in the world – the Saudi Exchange had a Main Market capitalization of SAR 9.87 trillion (USD 2.62 trillion) at the end of 2022, while its Nomu – Parallel Market closed the year with a market capitalization of SAR 35.09 billion (USD 9.34 billion).3 These two markets within Saudi Exchange continue to receive a strong inflow of new listings – adding seven and eight companies, respectively, in Q4 2022 – for a total 269 listed issuers across both markets.4 Such dynamic growth helps to lift the surrounding economies, as evidenced by the Middle East and North Africa (MENA) region’s 288 percent year-over-year increase in newly listed issuers in the first three quarters of 2022 – providing a notable contrast to global IPO trends. The Saudi Exchange’s strong liquidity, sophisticated infrastructure and technology, transparent systems, and diverse investment offerings are making the market increasingly attractive to both regional and international investors.

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