European stock exchanges have risen by about 12 percent on average this year

On European stock exchanges on Friday morning, the last trading day of this year, indices slightly rose, thus solidifying gains for this year, and trading is calm as there are no news that would significantly impact the markets. The STOXX 600 index of leading European stocks was up 0.2 percent at 9:30 AM.

At the same time, the London FTSE index strengthened by 0.04 percent to 7,725 points, while the Frankfurt DAX rose by 0.17 percent to 16,730 points, and the Paris CAC increased by 0.30 percent to 7,558 points.

In recent days, trading on the exchanges has been calm, after stock prices have risen sharply since the beginning of the year. The STOXX 600 index has risen more than 12 percent this year and is close to its highest level in 23 months. The German DAX has risen nearly 20 percent at the same time, despite the independent situation in the economy. The French CAC has increased by more than 16 percent, while the British FTSE has risen by about 3.6 percent.

Asian MSCI index has risen about 5 percent this year

Asian stock exchanges are also trading cautiously on the last trading day of this year. The MSCI index of Asia-Pacific stocks, excluding Japan, was almost unchanged compared to yesterday at around 9:30 AM. Since the beginning of the year, it has gained about 5 percent, marking its first increase after two years of decline.

This morning, the Nikkei index on the Tokyo Stock Exchange weakened by 0.2 percent, and stock prices in Australia and Hong Kong also slightly fell. In Shanghai, however, they slightly rose, while there is no trading in South Korea today.

The Nikkei index has jumped the most this year, by about 28 percent, reaching its highest levels in over 30 years. Following closely is the Taiwanese stock exchange with a rise of nearly 27 percent, while the Indian Nifty index has risen about 20 percent.

On the other hand, stock prices on the Thai stock exchange have fallen the most this year, by about 15 percent. The Hong Kong Hang Seng index has slid by about 14 percent, while indices in Shanghai are on track for a loss of about 11 percent.

American S&P 500 near historic high

Thus, most Asian stock exchanges have followed the rise of Wall Street. Since the beginning of the year, the Dow Jones has risen by 13.8 percent, S&P 500 by 24.6 percent, and Nasdaq index by 44.2 percent.

This is attributed to the gradual easing of inflation and slowing economic growth. As a result, the US central bank has likely ended its cycle of interest rate hikes, with rate cuts expected next year. Investor confidence that the economy will avoid recession despite aggressive rate hikes in recent years also supports the market.

Thanks to the strong rise in stock prices over the past nine weeks, the S&P 500 has found itself near its highest level in history.

– This is one of the largest market jumps at the end of the year, which started even before the Fed’s messages in mid-December regarding interest rates and inflation. It shows how far we have come from the bottom of the ‘bear’ market last year and reminds investors that after dark clouds, the sun always comes – says Ryan Detrick, a strategist at Carson Group.