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
China calls for dialogue amid rising Iran-Israel conflict
The Chinese government emphasized on Monday the importance of “creating the conditions to return to the proper path of dialogue” between Iran and Israel, which have exchanged attacks in recent days resulting in more than 20 Israeli and over 220 Iranian deaths.
Chinese Foreign Ministry spokesperson Guo Jiakun expressed deep concern at a press conference over the Israeli attacks on Iran and the “sudden escalation” of the military conflict.
Guo called on all parties to “take immediate measures to ease tensions and prevent the region from descending into further turmoil,” stating that “force cannot bring lasting peace.”
“If the conflict between Israel and Iran continues to intensify or even expand, the countries of the Middle East will be the first to suffer the consequences,” he added, while noting that China “will continue to maintain communication with the relevant parties, promoting peace and dialogue.”
Chinese Foreign Minister Wang Yi spoke last Saturday with his Iranian and Israeli counterparts to condemn the Israeli airstrike on Iranian territory, which he described as a “violation of international law” with the potential to trigger “disastrous” consequences.
In both calls, Wang reiterated China’s rejection of the use of force, defended diplomacy as the only solution to the Iranian nuclear dispute, and offered China’s mediation to prevent further destabilization in the Middle East.
International
Suspect arrested in killing of Minnesota legislator and husband, governor Says
Minnesota Governor Tim Walz announced on Sunday the arrest of Vance Luther Boelter, 57, the main suspect in the killing of Democratic legislator Melissa Hortman and her husband in a Brooklyn Park suburb on Friday night.
Boelter, who also reportedly shot State Senator John Hoffman and his wife early Saturday morning, was apprehended in Sibley County following an intensive manhunt involving hundreds of law enforcement officers.
In a public statement, Governor Walz condemned Boelter’s “unthinkable actions,” which resulted in the death of a woman who “shaped the core of who we are as a state.”
“We cannot become numb to this. We are a deeply divided nation,” Walz said in a statement posted on his X account.
“We move forward not with hatred or violence, but with humility, grace, and civility,” he added.
Expressing solidarity with the victims’ families, Walz said the entire state of Minnesota is in mourning. He also thanked law enforcement for their bravery and professionalism: “They have saved lives,” he emphasized.
“As we heal, we will not let fear win,” Walz concluded. “We must honor Melissa by moving forward with understanding, service, and above all, humanity.”
Throughout Sunday, police and sheriff units searched a rural area in Minnesota for Vance Luther Boelter, a security company director and preacher who, according to Governor Walz, acted out of politically motivated violence.
International
40,000 tourists stranded in Israel amid airspace shutdown over Iran conflict
Approximately 40,000 tourists are stranded in Israel following the closure of the country’s airspace amid escalating hostilities with Iran, the Israeli Ministry of Tourism reported on Monday.
The ministry has set up a virtual office to provide information via email (virtual@goisrael.gov.il) and phone (+972-53-583-5808), as well as a Facebook page called Israel Virtual Tourist Office.
Israeli Tourism Minister Haim Katz is in contact with hotels and accommodations across the country to offer support to tourists in need, the ministry added.
Many stranded travelers are considering crossing overland into Jordan or Egypt to seek flights from those countries. The Israel Airports Authority reminded the public that land border crossings remain open.
Three German tourists stranded in Jerusalem told EFE today that they have not received any assistance from their country’s embassy in Israel, and their primary option currently is to cross into Jordan to catch a flight from there.
Since early Friday morning, Israel launched operations against Iran, targeting military personnel and infrastructure, including energy and nuclear facilities, as well as numerous residential areas in Tehran.
In response, Iran has fired hundreds of ballistic missiles at Israel, some of which have struck various locations across the country, leaving at least 24 dead so far, according to Israeli authorities.
Iranian health officials report at least 224 deaths, mostly civilians, including at least 17 senior military officials—nine from the Revolutionary Guard—and more than a dozen nuclear scientists.
The Israeli military has warned that many more “targets” remain, while Iran’s Revolutionary Guard declared on Monday that it will continue missile attacks against Israel until its “destruction.”
China calls for dialogue amid rising Iran-Israel conflict
Suspect arrested in killing of Minnesota legislator and husband, governor Says
40,000 tourists stranded in Israel amid airspace shutdown over Iran conflict
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