2016 Financial year overview: Forex, Commodities, Stocks


2016 Financial year overview: What are the worst and best performers of the year across the Forex, Stocks, Commodities, and Bonds markets?

29 December, AtoZForex We are two days away from the Year of Rooster. I believe it is the perfect time to finalize financial markets’ performance throughout the whole year.

2016 Financial year overview

2016 was not the easiest year for financial markets. They were hit by Brexit, US elections, Italian referendum, worst-ever S&P 500 Index’s month and much more. Investors were everything but relaxed this year. Let’s go through the key 2016 financial events in relation to Forex, Stocks, Commodities, and Bonds markets.

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Forex

We can call this year particularly bad for any currency with “pound” in its name. For instance, the Egyptian Pound is the worst performer in 2016. Egyptian government allowed the Pound to trade freely. Such step was intended to stabilize the Egyptian economy, which is struggling with the shortage of USD and worries over the turmoil.

As for British Pound, it dipped after the Britons decided to exit the European Union on the 23rd of June. Moreover, the Sterling never bounced back. The UK currency is recorded as the worst performer amongst major currencies.

2016 Financial year overview

As for the bright side, cryptocurrency Bitcoin deserved a name of the best performer in 2016. The digital currency advanced more than 100 percent on capital controls in countries like China. Moreover, isolationist booms in the UK and the US drove the demand for alternate currencies.

Furthermore, Russian ruble has been the best performer of 2016, when it comes to currencies issued by central banks and governments.

Stocks

Nigerian equity market declined the most in 2016. Nation’s economic health is set to shrink in 2016 for the first time in more than 20 years. Such decline is explained by the capital controls that discourage foreign investment.

In spite of the recent turmoil, Brazilian Ibovespa stock index is still the best performer of 2016. It owes its winning position to the hopes that President Michel Temer will revitalize the Brazil economy. The Brazilian economy is experiencing its worst crisis in a century.

Commodities

Commodity bulls enjoyed 2016, as the market was relatively optimistic in comparison to one of 2015. Natural gas rose more than 60 percent over the past year.

2016 Financial year overview

Oil prices rebounded, even though the journey was harsh. West Texas Intermediate (WTI) dropped below $30 ahead of its soar above $50. Overall, it gained more than 50 percent this year.

Bonds

Investors highly favored Venezuelan bonds, which comes as a surprise given the uncertainty in the region. The bonds advanced on speculation that the Venezuela government might consider a deal to push bank debt maturities. Specifically, this would provide cash-restricted nation some freedom.

The worst-performing bonds came from Mozambique in 2016, as the country experiences debt recession and high inflation.

As for the US high yield corporate bonds, a lot of energy companies performed well on expectations of OPEC oil cut deal. However, Sidewinder Drilling Inc. bonds were the worst performing. Credit rating agency Moody’s downgraded the company and cautioned of a potential default.

Moreover, Anton Oilfield Services deserved a name of the best performer amongst emerging market corporate bonds. The company has inked an agreement with a Shanghai bank for more financing.

Think we missed something? Let us know in the comments section below.

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