After an exceptional year in 2020, US stock indices were brought down to earth. Nasdaq was up 43.6% in 2020! It increased 0.2% so far this year. The S&P 500 Index was up 12.1% in 2020. It was only up 2.3% so far.
The Shanghai Composite Index was up 11.2% in 2020. It only increased 0.8% so far this year.
|Stock Indices||Change in 2020||31-Dec-20||5-Mar-21||YTD 2021 Change|
|Hang Seng (HK)||-6.6%||27,231.13||29,098.29||6.9%|
|Nikkei 225 (Japan)||11.7%||27,444.17||28,864.32||5.2%|
|CAC 40 (France)||-7.7%||5,551.41||5,782.65||4.2%|
|Dow Jones (USA)||3.9%||30,606.48||31,496.30||2.9%|
|UK FTSE 100||-16.9%||6,460.52||6,630.52||2.6%|
|S&P 500 (USA)||12.1%||3,756.07||3,841.94||2.3%|
|Australia All Ordinaries||-0.9%||6,850.60||6,943.00||1.3%|
At the other end, the Straits Times Index (STI) lost 12.9% in 2020. It gained 6.0% this year so far. Hang Seng Index was down 6.6% in 2020, It was up 6.9% so far this year.
Confidence is coming back this year with vaccinations against Covid-19 gaining momentum since the start of 2021. Economic growth is generally expected this year from a recession in 2020. This alone will lend support to the equity markets since company performances improve with economic growth in business activities.
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