Weekly market review
Week ending 31st December 2015
The US stock market was up 1.4% at the close of the year. Other developed stock markets had stronger performance, with the STOXX Europe 600 (600 companies of different sizes across 18 European countries), TOPIX (the main Japanese Stock Exchange), and MSCI EAFE Small Cap (an equity index which captures small cap representation across 21 countries’ developed markets) up 9.6%, 12.1%, and 9.6%, respectively.
US Treasuries ended the year higher. Rates also rose in Germany and the UK, with the latter’s 10-year yield reaching a recent high as surprisingly strong home price inflation data increased the market’s expectations for an earlier Bank of England interest rate hike.
The US Dollar Index regained its strength this week, finishing up 0.73%. Although the Japanese Yen traded mostly flat, the Euro and British Pound lost ground against the US dollar, closing at $1.09 and $1.47, respectively. The US Dollar Index rose 9.3% in 2015, capping another dominant year for the US Dollar.
The decline in oil prices has continued unabated with oversupply, a warm winter, and unexpectedly higher crude stockpiles, all exerting downward pressure. West Texas Intermediate and Brent finished the year down 30% and 32%, respectively, with current prices not seen since 2004.
Source: Goldman Sachs Asset Management. Adapted by FundCalibre. This material is for information purposes only and does not in any way constitute financial advice.
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