Global Markets Gain in 2005

Elena
02 Jan, 2001
New York City

World stock markets finished a generally up year, ending on a down note the last trading session of 2005. The Dow Jones closed the year in the negative, down by 0.61%, while S&P 500 rose 3%, and the Nasdaq closed up 1.37%. Markets in Europe and Asia generally ended the year with gains of 15% or more. The Asian standouts were South Korea, up 54%, Japan rising 40.2%, and India higher by 42.3%. The leading European gainers were Russia, up 101.4%, Norway, up 52%, and Germany up 27%.

U.S. MARKETS

Global markets advanced throughout the year, ending generally in the positive territory.

Of the three major U.S. averages the Dow Jones Industrials was the only one fisnishing the year down. The Dow made its first annual decline for the first time since 2002, falling by 0.61% to 10,717.50. The Standard & Poor's 500-stockindex, the more closely watched benchmark among investing professionals, ended the year up 3%, and the Nasdaq composite index closed up 1.37%.

Most world stock markets ended the last trading session of 2005 below the unchanged mark, reflecting renewed concerns that the U.S economy may weaken in 2006. Most economists forecast a good year, with a 3% increase in gross domestic product. However, the fact that the yield on the 10-year Treasury note fell the last week of 2005 below the yield on the 2-year Treasury note caused concerns.

The 10-year Treasury yield advanced 4.05%.

COMMODITIES & CURRENCIES

Gold and oil surged in 2005. Credit in part emerging economies such as India and China, where demand for both oil and gold-based jewelry is on the rise.

Nymex Oil(front-month contract) climbed 40.48%.
Comex Gold (front-month contract) rose 18.19%.

The U.S. dollar strengthened as the Fed Reserve raised rates, making the U.S. assets more attractive to foreigners.

J.P.Morgan Dollar Index gained 4.68%.

ASIAN & EUROPEAN MARKETS

European and Asian stock markets generally ended the year with gains of 15% or more, although those rises were partly offset by currency weaknesses against the dollar.

Asian stocks rose for a third year, the longest rally in a decade on signs that the country's economy is on the road of recovery. Japan's Nikkei 225 Stock Average had its biggest annual jump since 1986, while indexes in South Korea, India and Australia rose to records on continued growth in the U.S. and Japan economies.

Canada was up 21.9%
Mexico advanced 37.8%
Brazil rose 27.7%
Argentina gained 12.2%

Germany climbed 27.1%
UK advanced 16.7%
France was up 23.4%
Italy rose 15.5%
Spain gained 18.2%
Sweden soared 32.6%
Switzerland climbed 33.2%
Norway - 52% up
Russia surged 101.4%

Japan soared 40.2%
Hong Kong ended up 4.5%
India advanced 42.3%
South Korea surged 54%
Australia gained 17.6%
Singapore added 13.6%
Taiwan gained 6.7%