Global stocks strengthened last year, with the main US index, the S&P 500, rising by about a fifth

Global stock prices rose across the board last year. The main US stock index, the S&P 500, strengthened by more than a fifth, and the Nasdaq Composite Index, which mainly includes stocks from the technology sector, rose by 21 percent. European, Japanese, and Chinese stocks also posted significant gains, according to stock market statistics. In terms of sectors, precious metal mining stocks, mainly gold, dominated, followed by arms companies, European banks, and space-related companies.

Global stocks rose by tens of percent in 2025

“Global stocks performed very well last year. According to the Bloomberg World Index, which measures the performance of global stocks with large and medium market capitalization, the value of global stocks expressed in dollars rose by 20 percent,” said XTB analyst Tomáš Cverna. The US Nasdaq 100 index rose mainly thanks to enthusiasm for artificial intelligence (AI). “After Nvidia, the new star of the US market became Alphabet, Google’s parent company, whose shares have gained as much as 66 percent since the beginning of the year,” Portu analyst Marek Pokorný told ÄŒTK.

Nvidia shares rose 34 percent last year, Apple added 11.5 percent, Microsoft 15.5 percent, Amazon 4.8 percent, Meta Platforms 10.1 percent, and Tesla 18.6 percent. In Europe, the German DAX index performed particularly well, rising 22.9 percent. Investors appreciate the abolition of the debt brake and large fiscal incentives to revive the German economy, which is the largest in Europe. The Euro Stoxx 50 eurozone stock index strengthened by 18.7 percent, while the pan-European STOXX Europe 600 index added 16.7 percent. The British FTSE 100 index also broke records, strengthening by 21 percent.

Poland, South Korea, and gold drove the markets, while European banks and arms manufacturers broke records

Poland, along with South Korea and Japan, were among the most profitable markets last year. The Korean Kospi index rose by 80 percent, while the Polish WIG20 rose by 45 percent, Cverna said. The Prague Stock Exchange’s PX index also performed very well, strengthening by 53 percent. Higher gold prices sharply increased the profits of mining companies, which triggered a rise in their shares. For example, shares in Newmont, the most valuable mining company, rose by 168 percent, Kinross Gold, the second largest, by 203 percent, while Gold Fields shares rose by 193 percent.

Among European banks, Spain’s Banco Santander, the largest in Europe, stood out with its performance, with its shares gaining 130 percent. It was followed by another Spanish bank, BBVA, with growth of 116 percent, and Italy’s UniCredit with growth of 85 percent. Banks from the old continent are surprising with strong profits and profitability, contributed to by higher interest rates and low levels of non-performing loans. Another source of growth is the revival of investment banking, which has particularly benefited Germany’s Deutsche Bank, whose shares rose by 98 percent.

Arms manufacturers also performed well last year, especially European ones, although the prospect of a peaceful resolution to the conflict in Ukraine has reduced the annual return on these shares in recent days. Shares in the German arms manufacturer Rheinmetall gained 153 percent last year. Saab shares rose 130 percent, Leonardo 89 percent, and Thales 67 percent. The armed conflicts in Ukraine and the Middle East, global tensions, and political pressures in the US have forced NATO member states to increase their defense spending, Cverna added.

Source: Reuters

author avatar
EditorialTeam
The Trader-Magazine.com EditorialTeam is a collective of certified financial analysts, active traders, and cryptocurrency experts. Our mission is to transform complex market data (forex, equities, indices) into accessible financial education. All content undergoes rigorous, multi-level fact-checking to ensure we deliver only accurate, objective information for your trading and investment decisions.

Top 10 financial instruments for 2022. What will their prospects be in 2023?

The year 2022 has brought countless surprises and obstacles...

Telegram scams: how they work and how to protect yourself

Telegram has become one of the most widely used...

Trump Saved TikTok from a Ban. The App in the U.S. Moves into American Hands

TikTok narrowly avoided a ban in the United States...

Climate Change Poses Major Risks to Financial Markets, Regulator Warns

WASHINGTON — A top financial regulator is opening a...

Golden Brokers Review

Golden Brokers Limited was founded in 2018, it is...

Canada Invests in Cohere, an Artificial Intelligence Company

Canada is investing CAD 1.6 billion (CZK 25 billion)...

Airbus’s operating profit fell by nine percent in the third quarter

European aircraft manufacturer Airbus saw its adjusted operating profit...

ETF Expense Ratio: What a 0.20% Fee Really Costs Over Time

An ETF expense ratio of 0.20% may look almost...

What Is a Recession? The Indicators That Matter Before and After One Starts

A recession can reshape an entire economy, affecting employment,...

Anthropic has filed for an IPO, which could be the largest stock offering to date

The American company Anthropic filed for an initial public...

Real Estate ETFs: A Practical Guide to REIT Exposure Through Funds

Real estate has long attracted investors looking for rental...

Musk reportedly invested a billion dollars in the Skydance media group

American billionaire Elon Musk has invested roughly one billion...
spot_img

spot_imgspot_img