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.

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