It was a very bullish month for world equity markets, with net monthly gains ranging from +9.3% (Brazil), +8.2% (Russia, India), +4.3% (South Africa), +3.8% (Japan), +3.4% (Hong Kong), +3.3% (USA), +3.2% (Germany), +2.4% (China), to +1.6% (Australia).
For the year, net changes ranged from +16.0% (Japan), +15.7% (India),
+13.9% (China), +7.2% (USA), +3.5% (Germany), +2.9% (Brazil),
+0.7% (Australia), -2.2% (South Africa), -3.4% (Hong Kong), to -10.4% (Russia).
Lets take our regular look at ten of the world equity markets.
USA - Dow
The mighty Dow ended the year on a very bullish note, breaking a new historic high of 30637, and settling net higher for December by +967pts (3.3%) to 30606. Monthly momentum continues to build, with the Dow settling far above the key 10MA of 26684. For the year, the Dow gained +7.2%, but that was still very impressive, having recovered from a March low of 18213.
Germany – DAX
German equities climbed into year end, breaking a new historic high of 13903, settling +427pts (3.2%) to 13718. Upper bollinger is offering the 14000s in early 2021. For the year, the DAX was net higher by +3.5%.
Japan – Nikkei
The Japanese market saw bullish follow through from the November breakout, settling +1010pts (3.8%) to 27444, making for a net yearly gain of +16.0%. The BoJ will no doubt be very pleased that the printing is showing results.
Brazil – Bovespa
Like most other world markets, the Brazilian market climbed for the sixth month of nine, breaking a new historic high of 120149, and settling net higher for December by +10123pts (9.3%) to 119017. Momentum has only just turned positive. For the year, net higher by +2.9%, having recovered from a collapse low of 61690.
Russia - RTSI
Russian equities ended the year on a strong note, the RTSI net higher for December by +105pts (8.2%) to 1387, although that still made for a severe net yearly decline of -10.4%. Momentum is set to turn positive in January.
India – SENSEX
Indian equities powered upward into year end, breaking a new historic high of 47896, and settling +3601pts (8.2%) to 47751. A net yearly gain of +15.7%.
China – Shanghai comp'
Chinese equities climbed for a third consecutive month, settling +81pts (2.4%) to 3473. The close above key price threshold of the 3400s is significant. Next resistance is the Jan'2018 high of 3587. Any price action >3600 would be decisive, and offer the 4200s. Net higher for the year by +13.9%.
South Africa – Dow
South African equities ended 2020 on a very positive note, settling +72pts (4.3%) to 1763, although that still made for a net yearly decline of -2.2%.
Hong Kong – Hang Seng
Hong Kong equities climbed for the sixth month of seven, the Hang Seng settling +889pts (3.4%) to 27231, although that still made for a net yearly decline of -3.4%. Momentum has turned positive, with next resistance of around 29k.
Australia – AORD
Australian equities climbed for the eighth month of nine, settling +108pts (1.6%) to 6850. Momentum has turned positive, as the Feb'2020 historic high of 7289 is set to be challenged.
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Summary
For December, all ten world equity markets were net higher. Brazil, Russia, and India lead the way higher, whilst Australia lagged. The USA, Germany, Brazil, and India broke new historic highs.
For the year, seven world equity markets were net higher, the exceptions being South Africa, Hong Kong, and Russia. The USA, Germany, Brazil, India, and Australia, broke new historic highs this year.
On any basis, it was a very bullish end to the year, not least with four markets breaking new historic highs. The hyper ramp from March was indeed pretty incredible, as the mainstream were increasingly hopeful of a return towards economic and social normalcy.
Clearly, the central banks were a massive factor, with the US fed alone printing $3trn of new money, which helped drive equities back upward. It should be clear, further trillions of new money - from an array of the central banks, can be expected across 2021.
I would add that monthly equity momentum is showing zero sign of a near term ceiling/turn in any of the world markets. As things are, the short, mid, and long term trend is bullish in a fair number of markets, which does include the USA.
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Looking ahead
2021 will begin on a busy note, not least with some key election events...
Tuesday Jan'5th - Georgia, two Senate run offs
Wednesday Jan'6th - a joint session of the US congress, which will vote on whether to certify the electoral college votes.
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Earnings:
M - -
T - SGH
W - SMPL, GBX
T - BBBY, WBA, STZ, CAG, AYI, MU, WDFC, ACCD
F- -
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Econ-data:
M - PMI manu', construction
T - ISM manu', vehicles sales
W - ADP jobs, PMI serv', factory orders, FOMC mins (2pm)
T - Weekly jobs, intl' trade, ISM serv'
F - Monthly jobs, wholesale invent', consumer credit'
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Have a good weekend
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*the next post on this page will be the 'The outlook for 2021', and will likely appear on Saturday,
