December, Fourth Quarter, and 2013 in Figures
January 1, 2014
Financial market trends in December for the most part conformed directionally with full-2013 results. 2013 was a banner year for share prices. Diverse movement in long-term interest rates had no notable influence over currency fluctuations aside from Japan, where the 10-year JGB yield closed below its end-2012 level and the yen depreciated across the board. The Australian dollar also declined extensively, although not far enough for Australian officials to concede that it was back to an appropriate equilibrium. The key dollar-euro pair showed remarkable stability in 2013, and the dollar was comparatively steady against other key European monies like sterling and the Swiss franc. It was an awful year for gold bulls. A net 7.2% rise in oil prices reversed their decline in 2012.
The curtain opens on 2014 with many unresolved matters. Public confidence has eroded in democratic forms of government as Western governments struggle to act in a timely way to promote the public welfare and not merely as a pawn of special interests. Populations are ageing. While the very fast evolution of electronic technology and applications has narrowed the gap between old-school industrialized economies and the developing and emerging world, it has also made wealth and income in the industrialized nations dangerously unequal. Impediments remain huge to contemporary solutions that would avert potentially catastrophic long-term consequences to the planet. Central bankers still talk of normalizing monetary policies back to the way things were done before 2007, but as each year passes without it happening, doubts build that such may ever happen.
Looking back, a few calendar years stand above the others as truly transforming crossroads like the Fall of Rome in 477 and end of the Middle Ages in 1453. 1914 was another such watershed that left the world afterward forever far different from before. In this centennial of that landmark, one can only hope for a much calmer sequel in 2014 as politicians and markets work their way through the big issues of the day.
| 10-Yr Yield | 12/31/13 | Chg vs 11/30 | Chg vs 09/30 | Chg vs 12/31/12 |
| U.S. | 3.03% | +28 Basis Points | +41 Basis Points | +127 Basis Points |
| Germany | 1.92% | +22 | +14 | +60 |
| Japan | 0.73% | +12 | +5 | -6 |
| U.K. | 3.02% | +25 | +30 | +119 |
| Canada | 2.75% | +20 | +21 | +96 |
| Switzerland | 1.07% | +19 | +5 | +62 |
| 3-month euros | Chg vs 11/30 | Chg vs 09/30 | Chg vs 12/31/12 | |
| U.S. | 0.25% | +1 Basis Point | 0 Basis Points | -6 Basis Points |
| Euroland | 0.27% | +8 | +11 | +14 |
| Japan | 0.15% | +1 | 0 | -3 |
| U.K. | 0.53% | +1 | +1 | +1 |
| Canada | 1.17% | 0 | 0 | -7 |
| Swiss | 0.02% | 0 | 0 | +1 |
| FX | Pct Chg in USD | Pct Chg in USD | Pct Chg in USD | |
| EUR/USD | 1.3758 | -1.4% | -1.7% | -4.1% |
| USD/JPY | 105.34 | +2.5% | +7.1% | +21.4% |
| USD/CHF | 0.8924 | -1.7% | -1.4% | -2.5% |
| GBP/USD | 1.6563 | -1.2% | -2.3% | -2.0% |
| AUD/USD | 0.8923 | +2.0% | +4.5% | +16.5% |
| NZD/USD | 0.8226 | -0.8% | +1.0% | +0.7% |
| USD/CAD | 1.0620 | +0.1% | +3.1% | +6.9% |
| USD/CNY | 6.0535 | -0.6% | -1.1% | -2.9% |
| Equities | Chg vs 11/30 | Chg vs 09/30 | Chg vs 12/31/12 | |
| S&P 500 | 1848 | +2.3% | +9.9% | +29.6% |
| Nasdaq | 4177 | +2.9% | +10.8% | +38.3% |
| Djia | 16577 | +3.1% | +9.6% | +26.5% |
| Dax | 9552 | +1.6% | +11.1% | +25.5% |
| Nikkei | 16291 | +4.0% | +12.7% | +56.7% |
| Ftse | 6749 | +1.5% | +4.4% | +14.4% |
| Canada TSE | 13622 | +1.7% | +6.5% | +9.6% |
| Swiss SMI | 8203 | -0.7% | +2.2% | +20.2% |
| Commodities | Pct Change | Pct Change | Pct Change | |
| Oil, $ per barrel | 98.42 | +6.1% | -3.8% | +7.2% |
| Gold, $ per ounce | 1201.90 | -3.9% | -9.4% | -28.2% |
Copyright Larry Greenberg 2014. All rights reserved. No secondary distribution without express permission.
Tags: 2013 changes in stocks, bonds, commodities, Dollar
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