December saw the end of the trading month, quarter and year for 2014. It provides a good chance to look back over the year and see how markets and currencies fared over a longer time period.
In Europe, the FTSE ended the year at 6547.8 (well, more or less – the data comes from 2nd of January 2015 because of the end of year holidays). It slipped by 2.9% over the month, but ended the quarter up by 0.3%; over the course of the year, it was shed 2.7% of the value it carried into the year, despite relatively upbeat UK economic data. The Dax ended the year at 9506.2, slipping by 5.8% in December, but making 3.8% in Q4, it ended the year up by 0.75% on where it had begun. The Cac 40 ended the year at 4252.3, down by 3.8% in December, slipping by 0.69% over Q4, but strengthening by 0.11% over the course of 2014. It is perhaps surprising that the Dax and Cac indexes held their own in 2014, given concerns about the pace of growth within the Eurozone and fears of deflation.
The Dow Jones Industrial average ended the year at 17833, making a loss of 0.7% in December, but putting on 4.8% in Q4 and an impressive 8.3% over 2014. The Nasdaq composite index ended the year at 4726.8, slipping by 1.1% in December, but making 5.6% in Q4 and a striking 14.4% over the course of 2014.
In Japan, the Nikkei ended the year at 17451, down by 2.6% in December, but rising by 11% in Q4 and ending the year up by a highly respectable 7.1% - the fate of the currency, of course, is another story.
Currency Markets Review
On the currency markets, the Yen has rallied somewhat. The US Dollar strengthened against Sterling and the Pound buys $1.5360, gaining 1.8% in December, 3.8% in Q4 and 6.5% over the course of 2014. The Euro fell to $1.2010 slipping by 2.4% in December and by 4% in Q4, it ended 2014 down by 11.7% against the Greenback. The Dollar gained 15% against the Yen over the course of 2014 and stood at 120.21 Yen as 2015 started.
Sterling made 0.88% against the Euro in December, with 1£ buying €1.2789, gaining 0.88% over the month and 0.28% over the fourth quarter. Sterling appreciated by 6% over the course of the year.
The Euro ended December worth 144.4 Yen, slipping by 3.4% in December, but rising by 5.2% in Q4 and 1.6% over the year.
The Chinese currency has eased against the Dollar over the course of the year by 2.6%.