European stock markets ended the last session of the year with a negative sign as investors prepare to welcome 2022 in the shadow of the micron mutation, with the indices recording for 2021 the best performance of recent years.
European indices recorded an impressive rally this year as European economies recovered strongly after the nightmare 2020, with the help of the European Central Bank’s highly facilitative policies and fiscal stimulus packages. These gains, however, overshadowed at the end of the year concerns about the micron mutation of the coronavirus that has led to an outbreak of cases worldwide.
On the board, the STOXX 600 completed trades with small losses of 0.1% to 488.03 points, closing the week with total gains of 1.3%.
For 2021 in total the index recorded gains of 22%. This is the best year of the STOXX 600 since 2019, when it gained 23%, and the second best year since 2009. Banks and the technology industry led the rise, recording a 34% rally this year, while even the travel industry managed to record a 4% increase despite restrictions due to the pandemic.
The British FTSE 100 fell 0.2% today, while the French CAC lost 0.3%. Both markets closed earlier for the New Year celebrations. The German DAX, the Swiss SMI and the Italian FTSE MIB did not open today.
For 2021 overall, the FTSE and the DAX strengthened by about 15%, while the French CAC recorded a jump of almost 30%.
For 2022, analysts are optimistic that the micron will not derail the global recovery, although they warn that it is still too early to draw definitive conclusions about the impact of the public health crisis in the coming months. At the same time, the attitude of the ECB gives impetus to investment psychology, which does not seem to be in a hurry to abandon the easing direction of monetary policy, despite the recent jump in inflation. In the US, on the other hand, the Federal Reserve is preparing to raise interest rates in order to curb inflation, with analysts not ruling out even three interest rate hikes in 2022.
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