In a drastic reversal of fortunes, the stock markets of developed countries such as Japan and the United States were big winners in 2013, while stock markets of most developing countries — previous top performers in 2012 — barely rose with some even registering negative returns.
Japan’s Nikkei 225 index, for example, was the world’s 4th best stock market in 2013, surging an unprecedented 56.72% in the past 12 months ending December.
The Federal Open Market Committee (FOMC) of the U.S. Federal Reserve announced yesterday, June 19, that if the U.S. economy continues to improve, it will start winding down its asset-buying program and may completely end it by mid-year of 2014.
The news sent stock markets in the United States down by more than 1 percent, with the Dow Jones industrial average (DJIA) closing 205.96 points lower, or 1.34%, at 15,112.27.
The Standard & Poor’s 500 Index (S&P 500), meanwhile, closed 1.39% lower at 1,628.92, while the Nasdaq Composite Index was down 1.12% at 3,443.20.
