December and 2021 in Figures
January 1, 2022
In 2021, the dollar, long-term sovereign debt yields, share prices, commodity prices, and overall inflation rose. Only the Bank of England’s policy interest rate among central banks featured in the monthly feature rose, and that increase didn’t happen until mid-December via a comparatively modest 15 basis points. The Fed and ECB are tapering asset purchase programs, and the Fed is signaling that there will be interest rate lift-off during 2021. The Bank of Japan among central banks examined in this feature is the least predisposed to making monetary policy less accommodative, which is understandable because Japanese CPI inflation was only 0.5% at the end of 2021.
In December, equities remained well-bid, but the dollar’s appreciation in 2021 was was trimmed. These shifts may foreshadow a pivot that will differentiate 2022 from the past two years. Critical to the coming year will be the evolution of Covid-19 and its impact on economic growth, inflation, and central bank policies.
| 10-Yr Yield | 12/31/21 | Change in Dec | 2021 Change |
| U.S. | 1.51% | +6 | +60 Basis Points |
| Germany | -0.19% | +16 | +39 |
| Japan | 0.06% | +1 | +5 |
| U.K. | 0.96% | +15 | +80 |
| Canada | 1.42% | -15 | +75 |
| Switzerland | -0.17% | +11 | +44 |
| CB Policy Rate | 12/31/21 | Change in Dec | 2021 Change |
| Fed funds target | 0.00/0.25% | 0.00/0.25% | 0 Basis Points |
| ECB deposit rate | -0.50% | -0.50% | 0 |
| BOJ policy rate | -0.10% | -0.10% | 0 |
| BOE Bank Rate | 0.25% | 0.1% | +15 |
| Swiss 3M Libor | -0.75% | -0.75% | 0 |
| FX | 12/31/21 | Dec Chg in $ | 2021 Chg in $ |
| EUR/USD | 1.1376 | -0.3% | +7.4% |
| USD/JPY | 115.10 | +1.7% | +11.5% |
| USD/CHF | 0.9123 | -0.7% | +3.1% |
| GBP/USD | 1.3524 | -1.7% | +1.1% |
| AUD/USD | 0.7266 | -1.9% | +6.1% |
| NZD/USD | 0.6842 | -0.2% | +5.2% |
| USD/CAD | 1.2646 | -1.0% | -0.7% |
| USD/CNY | 6.3559 | -0.2% | -2.7% |
| Equities | 12/31/21 | Change in Dec | 2021 Change |
| S&P 500 | 4766 | +4.4% | +26.9% |
| Nasdaq | 15645 | +0.7% | +21.4% |
| Djia | 36338 | +5.4% | +18.7% |
| Dax | 15885 | +5.2% | +15.8% |
| Nikkei | 28792 | +3.5% | +4.9% |
| Ftse | 7385 | +4.6% | +14.3% |
| Canada TSE | 21223 | +3.0% | +21.7% |
| Swiss SMI | 12876 | +5.9% | +20.3% |
| Commodities | 12/31/21 | Change in Dec | 2021 Chg |
| Oil, $ per barrel | 75.21 | +12.7% | +55.0% |
| Gold, $ per ounce | 1828.60 | +3.0% | +42.6% |
Copyright Larry Greenberg 2022. All rights reserved. No secondary distribution without express permission.
Tags: foreign exchange, oil and gold prices, share prices, sovereign debt yields
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