International
Stocks stumble to end ‘miserable’ 2022
| By AFP | Roland Jackson |
Stock markets wrapped up their worst performances in years on Friday before heading into 2023 under recession fears following Russia’s invasion of Ukraine, high inflation and rising interest rates.
Both US and European indices closed their final sessions of the year in the red.
For the year, Frankfurt was down more than 12 percent and Paris lost 9.5 percent for their worst performances since 2018. London, however, was up 0.9 percent in 2022 as the energy sector was buoyed by soaring energy prices.
Wall Street saw its worst annual drop since 2008, with the S&P 500 index down around 20 percent and the tech-heavy Nasdaq losing about 30 percent for the year.
Equities were slammed as the US Federal Reserve, European Central Bank and Bank of England aggressively lifted interest rates in a bid to tackle rampant consumer price rises. The move carries the risk of sparking recession as higher borrowing costs slow economic activity.
US tech companies were hit particularly hard as they are usually boosted by lower interest rates.
The MCSI World Equity Index has lost almost a fifth in its worst annual performance since 2008, when markets were ravaged by the global financial crisis.
Asia-Pacific markets finished their last sessions mostly in the green on Friday.
But for the year, Hong Kong tanked 15.5 percent and Shanghai dived 15.1 percent in the biggest annual slumps since 2011 and 2018, respectively.
Covid spiked once more in China in December, after Beijing relaxed its strict curbs in the face of rare public outcry. The surge has also prompted worries about the impact on stretched global supply chains.
Tokyo plunged 9.4 percent in the first annual fall since 2018 but the Bank of Japan maintained its ultra-easy monetary policy, in contrast with other central banks, to help its fragile economy.
‘Pitiful end to miserable year’
“It’s shaping up to be a pitiful end to a miserable year in stock markets,” OANDA trading platform analyst Craig Erlam told AFP.
He said 2022 had “brought an end to an era” of low interest rates that fueled tech and crypto booms.
“That’s been replaced with soaring inflation and interest rates, immense economic uncertainty and the reshaping of energy markets in the aftermath of the Russian invasion of Ukraine,” Erlam added.
In commodities, oil prices rallied in 2022 with Brent gaining about 10 percent and the West Texas Intermediate adding around seven percent.
However, they remain significantly below peaks struck in March on supply woes after key producer Russia invaded its neighbor, sending natural gas prices also spiking.
Britain and other major economies now face the likely prospect of grim recessions next year, as consumers and businesses battle rampant inflation and rising rates after years of ultra-low borrowing costs.
“The most important take of the year is: the era of easy money ended, and ended for good,” noted SwissQuote analyst Ipek Ozkardeskaya.
“And given that there is still plenty of cheap central bank liquidity waiting to be pulled back, the situation may not get better before it gets worse,” she said.
“Recession, inflation, stagflation will likely dominate headlines next year.”
London was down 0.8 percent and Frankfurt shed 1.1 percent in half-day sessions ahead of the New Year holiday. Paris closed 1.5 percent lower.
On Wall Street, the Dow ended 0.2 percent lower while the tech-heavy Nasdaq shed 0.1 percent.
“It would appear that people have checked out for the year — and have settled back into holiday mode for New Year celebrations,” Erlam said.
Key figures around 2145 GMT
New York – Dow: DOWN 0.2 percent at 33,147.25 (close)
New York – S&P 500: DOWN 0.3 percent at 3,839.50 (close)
New York – Nasdaq: DOWN 0.1 percent at 10,466.48 (close)
London – FTSE 100: DOWN 0.8 percent at 7,451.74 (close)
Frankfurt – DAX: DOWN 1.1 percent at 13,923.59 (close)
Paris – CAC 40: DOWN 1.5 percent at 6,473.76 (close)
EURO STOXX 50: DOWN 1.5 percent at 3,793.62 (close)
Tokyo – Nikkei 225: FLAT at 26,094.50 (close)
Hong Kong – Hang Seng Index: UP 0.2 percent at 19,781.41 (close)
Shanghai – Composite: UP 0.5 percent at 3,089.26 (close)
Euro/dollar: UP at $1.0704 from $1.0667 on Thursday
Pound/dollar: UP at $1.2094 from $1.2062
Euro/pound: UP at 88.47 pence from 88.40 pence
Dollar/yen: DOWN at 131.11 yen from 132.96 yen
West Texas Intermediate: UP 2.4 percent at $80.26 per barrel
Brent North Sea crude: UP 2.9 percent at $85.91
International
Pope Francis meets former Gaza hostages
Pope Francis met on Thursday at the Vatican with 16 Israelis who had been held hostage in Gaza for months by the Islamist group Hamas, according to the official Vatican news website.
The group consisted of ten women, four men, and two children, as reported by the same source. Several of the former hostages showed the Argentine pontiff banners or photos of their loved ones who remain in captivity.
Francis had previously met with the families of hostages in April this year and November 2023, but this was the first time he had met with individuals who had personally endured captivity.
Since the conflict between Israel and Hamas began, the pope has repeatedly called for the immediate release of Israeli hostages, while also condemning the suffering of the Palestinian population.
The war erupted on October 7, 2023, when Islamist militants attacked southern Israel, killing 1,206 people, mostly civilians, and kidnapping 251, according to an AFP tally based on official Israeli figures that include hostages who died in captivity.
Of the kidnapped, 97 are still being held in Gaza, but the Israeli military estimates that 34 of them have died.
The military offensive launched by Israel in response has killed at least 43,736 people in the Gaza Strip, mostly civilians, according to data from the Ministry of Health in the Hamas-governed territory.
International
Israeli airstrikes on Damascus kill 15 and injure 16, including women and children
Israeli forces carried out airstrikes on residential buildings in the Syrian capital, Damascus, and its surroundings on Thursday, resulting in at least 15 deaths and 16 injuries, according to Syria’s Ministry of Defense and state television.
The ministry stated that around 3:20 p.m. local time (12:20 GMT), the Israeli military launched an aerial attack from the direction of the occupied Golan Heights, targeting several residential buildings in the Mazzeh neighborhood in western Damascus and the Qudsaya suburb to the northwest of the capital.
The airstrikes “resulted in the death of 15 people and injuries to 16 others, including women and children,” based on initial estimates, in addition to significant damage to private property and civilian buildings, the ministry added.
Meanwhile, state television reported Israeli airstrikes on three buildings in Mazzeh and another on a building in an educational complex located in a residential area of Qudsaya.
Following the strikes, loud explosions were heard throughout the city, and thick plumes of smoke could be seen rising from the targeted locations. Ambulances and emergency services rushed to the scene to attend to the victims.
International
Drug trafficker dies after boat collision with Guardia Civil Vessel in Sanlúca
Three people were on the boat that collided with a Guardia Civil vessel around midnight at the mouth of the Guadalquivir River in Sanlúcar de Barrameda, near the Andalusian city of Cádiz, a spokesperson for the Civil Guard reported.
Two officers sustained “contusions,” the spokesperson explained.
The drug traffickers managed to bring the boat to shore, where one of them was “abandoned” severely injured. The other two fled.
The Civil Guard officers attempted to resuscitate the victim before transporting him to Sanlúcar de Barrameda, but he ultimately died early in the morning.
The other two suspects took advantage of the officers’ absence while they were taking the victim and returned to set their boat on fire.
The collision occurred very close to the site of another accident on September 1, where a drug trafficker died following a Guardia Civil pursuit.
The suspects’ boat traveled “400 meters” before crashing head-on and “at full speed” into the riverbank, where a hundred bundles of hashish were found.
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