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
Uribe requests freedom amid appeal of historic bribery conviction
Former Colombian President Álvaro Uribe on Monday requested that the Supreme Court restore his freedom while he appeals the historic 12-year house arrest sentence he received for bribery and procedural fraud.
Uribe, the most prominent figure of Colombia’s right wing, was convicted last week by a lower court for attempting to bribe paramilitary members into denying his ties to the violent anti-guerrilla squads.
Since Friday, the 73-year-old has been under house arrest at his residence in Rionegro, about 30 km from Medellín. The judge justified the measure by citing a risk of flight.
However, Uribe’s defense team rejected that argument and formally petitioned the court to immediately lift the detention order, claiming it lacks legal basis.
Uribe, a dominant force in Colombian politics for decades, is now the first former president in the country’s history to be convicted and placed under arrest, found guilty of witness tampering and obstruction of justice to prevent links to paramilitary groups.
He has repeatedly denounced the trial as politically motivated, blaming pressure from the leftist government currently in power.
His political party, Centro Democrático, has called for nationwide protests on August 7 in support of Uribe, who remains popular for his hardline stance against guerrilla groups.
Uribe has until August 13 to submit his written appeal. The case will then move to the Bogotá High Court, which has until October 16 to uphold, overturn, or dismiss the sentence. If the deadline passes without a decision, the case will be archived.
International
U.S. Embassy staff restricted as gunfire erupts near compound in Port-au-Prince
The poorest country in Latin America and the Caribbean is currently engulfed in a deep political crisis and a wave of violence driven by armed groups — a situation that an international security mission led by Kenya is attempting to stabilize.
Due to the worsening security conditions, the U.S. government has suspended all official movements of embassy personnel outside the compound in Port-au-Prince, the U.S. State Department announced Monday in a security alert posted on social media platform X.
“There are intense gunfights in the Tabarre neighborhood, near the U.S. Embassy,” the alert reads, urging the public to avoid the area.
Tabarre is a municipality located near Port-au-Prince International Airport, northeast of the Haitian capital.
According to a July report by the UN High Commissioner for Human Rights, at least 3,141 people were killed in Haitibetween January 1 and June 30 of this year.
International
Israel says 136 food aid boxes airdropped into Gaza by six nations
The Israeli military announced on Sunday that 136 boxes of food aid were airdropped into Gaza by the United Arab Emirates, Jordan, Egypt, Germany, and Belgium.
“In recent hours, six countries conducted air drops of 136 aid packages containing food for residents in the southern and northern Gaza Strip,” read the statement, which added that the operation was coordinated by COGAT, the Israeli defense body overseeing civil affairs in the occupied Palestinian territories.
The Israeli military emphasized that they will “continue working to improve the humanitarian response alongside the international community” and reiterated their stance to “refute false allegations of deliberate famine in Gaza.”
The announcement comes as UN agencies warn Gaza faces an imminent risk of famine. More than one in three residents go days without eating, and other nutrition indicators have dropped to their worst levels since the conflict began.
The agencies also noted the difficulty of “collecting reliable data in current conditions, as Gaza’s health systems —already devastated by nearly three years of conflict— are collapsing.”
Meanwhile, Gaza’s Hamas-run Health Ministry reported on Sunday that hospitals in the enclave recorded six deaths from hunger and malnutrition on Saturday, all of them adults.
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