With an impressive year-end rally in 2016, the world stock markets reconciled many investors. At 11,455 index points, the Dax still posted a plus of 6.9%. Although the Dow Jones Industrial Index was unable to reach the “magical” 20,000 mark for the first time at 19,790 index points, the Dax outperformed by 15.2%. Bitcoins were the best investment in 2016 and the ruble was among the strongest currencies in the world.
The year 2016 was full of negative news – Brexit, increasing IS terror not only in Syria, but also in Germany, France, Belgium and Turkey, the refugee wave in Europe, the growing tensions between the USA and Russia, the banking crisis in Italy, The division of Europe, the rise of nationalism and protectionism in many countries of the world, strongly rising interest rates especially in the USA and in Italy …
DAX closed the year at 6.9%
But since the US election, Donald Trump’s, which had previously been seen as the worst news of the year, was exactly the opposite of what was previously expected: the Dow Jones Industrial Index reached a new all-time high, rising by more than 15% since the beginning of the year. Only since this election victory, the German stock index Dax rose to 11,445 index points, which is 6.9% since the beginning of the year. Previously, the Dax was down the year due to China’s fears – since the mini-crash in January 2016. Just like the Japanese stock market, which was able to save almost a year as a result of a price increase of more than 20% since October 2016.
Adidas were the best in Germany, with a plus of more than 60%, followed by Siemens with over 30%. Despite the downturn in September, the price of Deutsche Bank AG recovered again by more than 70% from 10 to over 17 Euro, but remained negative for the year, since the start of the year.
Italian banks continue in distress
The unresolved banking crisis in Italy and the resignation of the Italian Prime Minister Matteo Renzi after the failed referendum on a change in the constitution also prevented the impressive year-end rally of the Dax and also that of Deutsche Bank. The Banca Monte dei Pasha de Seine will need € 8 billion instead of the previously accepted € 5 billion for a capital increase. But also the Italian bank UniCredit Bank needs a capital injection of more than 13 billion euros. The Italian state wants a total of € 20 billion to help the Italian major banks, although Italy is already heavily indebted to the gross social product with 135%.
Moscow stock market with neat backwind – rising oil price and US election victory
The shares on the Moscow stock exchange rose the most. In addition to price gains, high currency gains were also added. The Russian RTS index rose by 51.1% to 1,152 index points, while the ruble-based Micex was “only” 25.3% to 2,232 index points. The ruble was one of the strongest currencies in the world in 2016, thanks to the almost 50% increase in oil prices. For example, the euro fell by 21 per cent to EUR 64.46 / ruble and the US dollar to the ruble by 17.7 per cent to USD 61.21 / ruble.
Volatile Russian gold stocks despite a sharp correction still 44% in plusGold rose by 8.9 per cent in US dollars to US $ 1,151 / ounce in US dollars, or 13.4 per cent in euro to US $ 1,093 / ounce, despite the three-month downturn at the end of the year. That was still better than the performance of Dax. However, gold fell in rubles by about 10%. That was not the case for a long time.