Global Economy
Global Stock Markets 2010: Among big countries, Germany and US were in the lead while shares in China fell
By Finfacts Team
Jan 1, 2011 - 9:18 AM

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Global Stock Markets 2010:  Among the big countries, Germany and US were in the lead while shares in China  fell.

In Europe, the German Dax rose 16% in the year; the FTSE 100 climbed 9.2%; France's CAC 40 fell 3.3%; Italy's FTSE MIB tumbled 13.2%; Portugal's PSI 20 dropped 10.3% and Spain's IBEX 35 fell 17.4%.

Greece's Athex Composite plunged 35.6%.

In New York, the Dow Jones Industrial Average gained 11% in the year. The S&P 500 ended the year up 13%, while the Nasdaq jumped 17% in 2010 -- the second-straight year of gains for US stocks.

In Asia, China's Shanghai Composite dipped 14.3% in 2010; Japan's Nikkei posted a 3% drop for 2010.

Argentina's market closed up 82% followed by Thailand's at 70% and the Ukraine at 68%.
 
Gold rose from $1,096.95 in 2010 to $1,420.78 on Friday in New York. The US crude oil benchmark climbed from $79.86 a barrel to $91.38 a barrel on Friday, after jumping 78% in 2009.

The New York Times reports that US shares were underpinned by strong earnings, but in what is likely to be a worry for next year, the profits were bolstered by job cuts and other restructuring efforts, rather than revenue growth.

In the third quarter of the year, for example, earnings were 31% higher than last year, but revenue increased by just 8%. The disparity was even greater in the first quarter, as earnings jumped 58% but revenue rose only 11%.

A report by the London Business School and credit Suisse says only seven of the 38 countries with equity markets in 1900 changed status over the following 110 years.

Five markets moved from emerging to developed: Finland, Japan and Hong Kong plus, more recently, Portugal and Greece. Two moved from developed to emerging: Argentina and Chile.  Of the remaining 31 countries, 17 would have been deemed developed in 1900 and remain developed today, while 14 were emerging and are still in that category 110 years later.

Singapore, whose stock market opened in 1911, has also moved from emerging to developed status. This gives a total of six promotions over 110 years, plus Israel and Korea, currently in transition. The authors say while most countries have grown considerably in terms of GDP per capita, their relative rankings on this metric have changed far more slowly.

Robert Shiller, professor at the Yale School of Management, reveals his 2020 target for the S&P 500:

It's going to be a much tougher year for emerging markets next year, Jim Walker, founder and CEO of Asianomics, told CNBC Friday:


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