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.

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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.

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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.

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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.

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“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)

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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)

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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

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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

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International

Hiroshima survivor who embraced Obama dies at 88

The emotional embrace between Barack Obama and Hiroshima survivor Mori—who was eight years old when the United States dropped the atomic bomb in 1945—resonated around the world.

According to Asahi Shimbun and other local media, Mori died on Saturday at a hospital in Hiroshima.

Mori, known for his research on the fate of American prisoners of war in Hiroshima, was thrown into a river by the force of the explosion on August 6, 1945, during the atomic bombing of the city.

In a past interview with AFP, ahead of his meeting with Obama at the Hiroshima Peace Memorial in 2016, Mori recalled the chaos and desperation that followed the blast.

He described how, after emerging from the water, he encountered injured civilians seeking help amid the devastation, an experience that stayed with him throughout his life.

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In 2016, Obama became the first sitting U.S. president to visit Hiroshima, where he paid tribute to the victims of the first atomic bomb used in warfare. During the visit, Mori was visibly moved as he met the president, sharing a brief but powerful moment that symbolized remembrance and reconciliation.

The bombing of Hiroshima resulted in the deaths of approximately 140,000 people, including those who succumbed to radiation exposure in the aftermath.

Three days later, a second atomic bomb was dropped on Nagasaki, killing an estimated 74,000 people and contributing to the end of World War II.

International

Colombia seeks ‘total suffocation’ of armed groups with regional support

Colombia is advancing a strategy aimed at the “total suffocation” of illegal armed groups, seeking to corner them in border regions with the support of Ecuador and Venezuela, Defense Minister Pedro Sánchez said in an interview with AFP.

According to the minister, coordinated pressure from neighboring countries—backed by United States—aims to dismantle criminal networks that use cross-border routes to traffic Colombian cocaine toward North America and Europe.

For decades, armed groups involved in Colombia’s internal conflict have relied on border territories as strategic rear bases to evade military operations and maintain logistical support.

However, Sánchez said that dynamic is beginning to change.

“We expect a total suffocation between both nations so they have no spaces where they can live or feel safe […] to close off any room they might have,” he stated during the interview in Bogotá, less than five months before the end of President Gustavo Petro’s term.

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Regional developments have reinforced this strategy. Following the capture of Nicolás Maduro in a U.S. military operation, Washington has increased its influence in Caracas, where interim leader Delcy Rodríguez has implemented a renewed anti-narcotics policy.

Meanwhile, in Ecuador, President Daniel Noboa—a key U.S. ally in the region—has launched a two-week security plan under strict curfews to combat criminal gangs, with U.S. support.

Sánchez argued that these combined efforts leave illegal organizations with fewer escape routes and operational spaces, effectively placing them in a “dead end.”

International

Two killed in shooting at restaurant near Frankfurt Airport

Two people were shot dead early Tuesday at a restaurant in Raunheim, near Frankfurt Airport, according to local police.

Preliminary findings indicate that an armed individual entered the establishment at around 03:45 local time (02:45 GMT) and opened fire on the victims, who died at the scene from their injuries.

The suspect fled and remains at large, while the motive behind the shooting is still unclear, German media reported. Authorities have launched a large-scale search operation.