Despite today’s losses on Wall Street, global stock markets had a historic year.
World stocks, as measured by the MSCI All-Country World Index, rose in every single month - the first time ever that shares have avoided a monthly decline.
Marketwatch’s Ryan Vlastelica explains:
In fact, the index hasn’t had a down month since October 2016. It ended up 0.5% in December, and rose 21.8% over the course of the year.
Jeffrey Kleintop, chief global investment strategist at Charles Schwab, credited the strength to improving corporate profitability, tweeting, “Why have global stocks gone up every month so far this year? Earnings have too (both actual and expected).”
And on that note, we really are finished for 2017. Best wishes for the new year, and goodnight!
Wall Street ends bumper year with a dip
Hello again. After a rollicking year, the US stock market actually ended the final session of 2017 with some small losses.
The Dow Jones Industrial Average fell 0.5% to end 2017 at 24,719.22, the broad-based S&P 500 index also dropped 0.5% to close the year at 2,673.61, while the tech-rich Nasdaq Composite Index shed 0.7% to end at 6,903.39.
But it was still a very good year for the Dow, which closed at record levels on 71 occasions - itself a record.
Hello again. Here’s our news story about the global stock market rally this year:
I may pop back later with the Wall Street close, or any other major events.
Either way, we wish you all the best for 2018. Happy New Year! GW
Amazon’s share price has taken a knock, though, after Donald Trump tweeted that it was getting an unfairly generous deal from the US post service.
Amazon opens lower after Trump says the U.S. Postal Service should be charging it ‘much more’ for package delivery https://t.co/flluKAdDh3 pic.twitter.com/Xoax7cCkr7
— Bloomberg Markets (@markets) December 29, 2017
Here’s the tweet in question:
Why is the United States Post Office, which is losing many billions of dollars a year, while charging Amazon and others so little to deliver their packages, making Amazon richer and the Post Office dumber and poorer? Should be charging MUCH MORE!
— Donald J. Trump (@realDonaldTrump) December 29, 2017
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Ding ding! Over in New York, the final trading day of the year is underway.
And stocks are moving a little higher - with the Dow Jones industrial average gaining 30 points or 0.12%, and the S&P 500 index up 0.16%.
2017 has been a bumper year for America’s stock market, with the Dow surging by 25%m, and the tech-focused Nasdaq up by nearly a third.
Technology stocks had a particularly amazing year -- Facebook, Amazon and Netflix all jumped by over 50%, and Apple was close behind.
Gold has had its best year since 2010, pushed up by the weaker US dollar.
It just hit $1,300 for the first time since mid-October.
#Gold tops $1300 in commodity year-end rally. pic.twitter.com/Vdk0CTbVsQ
— Holger Zschaepitz (@Schuldensuehner) December 29, 2017
FTSE 100 gains £141bn this year
The FTSE 100 surged by around £141bn during 2017, according to the London stock exchange.
The FTSE 250 index, which contains medium-sized companies, gained around £52bn as it rattled to fresh record highs.
That fed into the $9 trillion surge in global share prices during this year (as measured by MSCI)
Shares have been a pretty decent investment this year - giving a rather better return than your local bank.
Richard Stone, chief executive of The Share Centre (a retail stockbroker) says there are reasons why shares could keep rising in 2018.
He says:
“For the second year in a row the FTSE100 has ended the year at an all-time high. Personal investors will have been relieved this year by a respite from the high volatility seen in the last couple of years. The level of volatility this year has though been remarkably low by historical standards and this has perhaps meant fewer trading opportunities for those investors who trade more actively.
Market commentators have expressed concerns about valuation levels for some time indicating a correction may be on the horizon. However, the market appears to be shrugging off any such concerns and continuing to go from strength to strength. Higher global growth forecasts, a continuation of relatively relaxed monetary policy and a loosening of fiscal policy specifically in the United States are all helping support equities. A personal investor who put money into a FTSE 100 tracker fund at the start of this year will have seen a return of nearly 8% with a dividend payout (yield) of over 3% on top of that.
With base rates now at just 0.5% and returns on cash remaining depressed the stark choice for investors seeking to drive an income from their capital is clear and this too helps drive demand for equities and equity based collectives (funds).
Mining giants also had a good year, thanks to a boom in commodity prices which saw copper hit a four-year high this week.
FTSE 100 has ended the year with a new (all time) record high. The main index of shares listed in London ended 2017 at 7,687 up 7.6% on last year.
— Joe Lynam BBC (@BBC_Joe_Lynam) December 29, 2017
The mining sector saw the biggest gains this year while Utilities such as water and electricity were the weakest.
The best and worst performing FTSE shares this year
So, which shares should you have bought a year ago, and which should have come with a health warning?
The best-performing share on the FTSE 100 during 2017 was actually a healthcare business based in the the United Arab Emirates, called NMC Health. It jumped by 86% during the year; any traders who backed NMC may be sprinting to the nearest City champagne bar this afternoon....
Second was Worldpay, the payments processor company spun out of the wreckage of Royal Bank of Scotland. It jumped by 57%, thanks to a takeover bid from US rival Vantiv.
Housebuilders also had a strong year; Persimmon was the third-best performing member of the Footsie, up 54%, followed by Berkeley Group which gained 49%.
But some companies will be glad to see the back of 2017. Centrica slumped by over 40%, partly due to a big profits warning in November, while telecommunications group BT and advertising giant WPP both shank by around a quarter.
FTSE 100 hits new record closing high
Breaking! A late burst of buy orders have sent Britain’s FTSE 100 index up to a new all-time high.
The final trading day of 2017 ended with a flourish, with the FTSE 100 closing up 64 points or 0.85% at 7,687 points. Just before the close, it hit a new intraday high of 7697 points.
This means the blue-chip index has gained 7.6% during 2017.
With the smaller FTSE 250 index also closing at a new record high, this puts the seal on a good year for the London stock market.
But, this still means the Footsie has lagged behind other stock markets - with Japan’s Topix and the US S&P 500 both up around 20% during 2017.
Updated
Just 10 minutes until the end of the trading year in London, and the FTSE 100 is heading towards a fresh closing high.....
Stocks cheer $9tn year
World stock markets have surged to a new alltime high today, meaning they’ve put on a blistering $9 trillion in value since the start of January.
That’s according to Reuters, which reports:
Markets were ending 2017 in a party mood on Friday after a year in which a concerted pick-up in global growth boosted corporate profits and commodity prices, while benign inflation kept central banks from snatching away the monetary punch bowl.
MSCI’s world equity index, which tracks 47 countries, inched up 0.15% as six straight weeks and now 13 straight months of gains left it at yet another all time high.
The index has been on an upward trajectory for pretty much all of 2017, putting it 22 percent and almost $9 trillion higher for the year.
Emerging markets have led the charge with gains of 34%. Hong Kong surged 36%, South Korea notched up 22% and India and Poland both made 27% in local currency terms.
Japan’s Nikkei and the S&P 500 are both ahead by almost 20%, while the Dow has risen by a quarter. In Europe, the German DAX has gained nearly 14 %, though the UK FTSE has lagged a little with a rise of 7%.
More here: Stocks cheer $9 trillion year, downer for the dollar
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The euro has enjoyed its best year since 2003, thanks to the recovery in the eurozone economy.
The single currency is the best performing G10 currency, according to Bloomberg data:
More photos of traders celebrating the last day of trading at the Philippine Stock Exchange in Manila have arrived; it seemed wrong not to share them.
Traders have plenty to celebrate -- the main Philippine stock index hit an alltime high this morning, and has gained 25% this year.
That helped Asian shares to rack up their best year since 2009 (as discussed earlier).
Updated
The smaller FTSE 250 index is also at record levels.
It rose by 0.25% to 20,695 points, a gain of 55 points this morning.
FTSE 100 keeps rising
The FTSE 100 is pushing further into record territory, as City investors get their buy orders in before trading closes early at 12.30pm.
The blue-chip index has now hit a fresh record high of 7,648 points, up 25 points or 0.3% today.
Reuters points out that natural resourse stocks had a stonking year:
Miners have been among the FTSE’s best-performing stocks this year, with Antofagasta up 47.4% and Glencore up 40.7% year-to-date.
Elsewhere NMC Health has been the index’s best-performing stock, while a takeover has pushed Worldpay’s shares 57 percent higher this year.
Housebuilders Persimmon and Berkeley Group have both had a comeback year, recovering after seeing their shares plummet in the immediate aftermath of the UK’s Brexit referendum in June 2016.
Spooky. 2017 FTSE winner NMC Health +82.7% in 2015, +83.7% in 2016 and +86% YTD.
— Mike van Dulken (@Accendo_Mike) December 29, 2017
Updated
Technology companies have led the rally in Europe this year, mirroring the surge in Amazon, Google, Apple, Facebook et al.
Miners, banks and industrial companies also had a good year, as this chart shows:
Mining was the second best sector in the Stoxx Europe 600 this year pic.twitter.com/xuWNOJzx2n
— Thomas Biesheuvel (@tbiesheuvel) December 29, 2017
Like most financial assets, shares are generally held by richer people (either directly or through pension funds). So the surge in global stock markets this year won’t have helped tackle wealth inequality.
The FTSE 100’s 6% rise this year has outpaced inflation (3.1% in December) and wages (up 2.3% during 2017).
And the bad news for British workers is that pay growth is likely to lag behind all other wealthy nations in 2018.
UK to sink to the bottom of OECD wage growth index in 2018 https://t.co/cphbf3Wd9i
— Richard Partington (@RJPartington) December 29, 2017
2017 hasn’t just been about rising stock markets. Brexit, Donald Trump, food safety, inequality and even a giant, sadly deceased, rabbit called Simon featured in our most popular stories this year.
Here’s a round-up of the business news that got you all clicking this year.
How Asian markets shrugged off political fears
The strong rally in Asia’s stock markets this year is particularly remarkable, given the geopolitical threat posed by North Korea and the risk that president Trump could trigger a trade war.
But instead, traders have shrugged off these worries - sending shares jumping across the region.
As CNBC puts it:
While geopolitical uncertainty was a major focal point earlier this year — with several North Korean missile launches initially sending investor scurrying into safe-have assets — risk appetite has since improved, with markets looking instead to stronger economic growth globally.
MSCI’s broad index of shares in Asia Pacific excluding Japan was up more than 34 percent year-to-date on Friday morning.
That’s above the roughly 25 percent climb seen on the Dow Jones industrial average and 8 percent rise on the pan-European STOXX 600 over the same period.
Asia stock mkts headed for a record close on the final trading day of 2017, capping best year since post-global fin crisis rebound of 2009, boosted by corporate profits & commodity prices & benign #inflation. WTI #Oil trades >$60/bbl. Dollar Index at 3mth low, #Bitcoin <$15k. pic.twitter.com/FxBjArGOft
— Holger Zschaepitz (@Schuldensuehner) December 29, 2017
The London stock market is “doing its festive best” to reach the New Year at a fresh record high, says Mike van Dulken of Accendo Markets.
Here are the top risers and fallers on the FTSE 100, as it hovers around this morning’s peak of 7,636 points.
Most global stock markets have enjoyed strong gains this year.
Craig James, chief economist at fund manager CommSec, said of the 73 bourses it tracks globally, all but nine have recorded gains in local currency terms this year (that’s via Reuters).
Japan’s Topix share index has also enjoyed a bumper year; it’s risen by over 19% during 2017.
Traders held a ceremony to mark the end of the trading year, and invited Go champion Yuta Iyama to ring the closing bell.
European stock markets are on track to record their best year since 2013.
The Stoxx 600 index has just opened flat, leaving it on track for a near-8% gain over the last 12 months.
The pound is also having a good morning. It’s up 0.5% against the US dollar at $1.35, a three-week high.
FTSE 100 hits fresh record high
Boom! Britain’s FTSE 100 index has hit a new record at the start of trading.
The blue-chip index has jumped by 13 points to 7,636, slightly over yesterday’s record high.
It means the Footsie has risen by 4.5% during December - a month that saw Britain agree the first phase of a Brexit deal with Brussels.
Just Eat, the fast food-ordering app company, is leading the risers, up 1.8%. It only joined the FTSE 100 this month, after seeing its value overtake the likes of supermarket chain J Sainsbury.
Updated
The agenda: Markets end 2017 on a high
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
It’s the final day of the trading year, and what a year it’s been for investors.
Stocks have surged world wide over the last 12 months - thanks to renewed confidence in the global economy and a steady drip-drip-drip of monetary stimulus from central bankers.
Over in Asia, the markets have enjoyed their best year since the aftermath of the financial crisis in 2009. The MSCI Asia Pacific Index, which tracks stocks across the region, has surged by almost 29% this year.
Hong Kong has enjoyed a particularly exuberant year - jumping by an sparkling 36%, while South Korea posted a 22% gain and India jumped by 27%.
Ceremonies have already been taking place at stock markets across Asia, including in Tokyo and Manila.
Many commodities have strengthened this year too, at the expense of the weaker US dollar. Donald Trump’s push for tax cuts has not made the greenback great again.
In Europe, many stock markets are already sitting on double-digit gains - Germany’s DAX, for example, is up 13%.
Britain’s FTSE 100 hit fresh record highs this week, but has actually only gained around 6.7% during the year. Today’s trading session will end at 12.30pm.
So, a solid year for shares. But could the markets be peaking? Some investors worry that the good times could end soon.
For example, an index from State Street that tracks investor risk appetite suffered its six straight monthly fall in December.
As Michael Metcalfe, State Street’s head of global macro strategy, put it:
“While the broader economic outlook appears increasingly rosy, as captured by measures of consumer and business confidence, the more cautious nature of investors hints at a concern that markets may have already discounted much of the good news.”
There’s not much in the agenda (understandably), apart from new inflation figures from Germany.
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