The US stock market averages had an extremely successful year as a result of considerable profit growth, the pause in US monetary policy, as well as a strong world economy. The market has rallied since the middle of July, with modest profit taking. 2006 will remain in history as a record year for merger-and-acquisition activity. The value of corporate acquisitions climbed 30% in 2006, reaching 3.6 trillion dollars over 12 months. The global expansion helped large companies to make high profits in 2006 and promise continued growth in 2007. Heavyweight oil companies sharply advanced, benefiting from the fuel boom on the back of record-high crude oil prices of $78 a barrel in July.
The blue-chip Dow Jones index rose 16.3% to close the year at 12,463.15, breaking the record highs set before the dot-com collapse. The broad-market Standard and Poor''s 500 index climbed 13.6% in 2006, while the Nasdaq jumped 9.5%.
European stock markets finished 2006 higher, with analysts predicting even higher levels in 2007. London’s FTSE 100 and the Paris CAC 40 hit six-year highs, lifted by strong corporate earnings and fervent takeover activity. The DAX 30 rose 22% in 2006. The CAC 40 gained 17.51%. The FTSE 100 gained 10.7% over the year
Most
Asian markets ended the year on a high note, marking a second straight year of strong growth. Bourses across the region surged to record highs, boosted by China''s boom, stronger corporate profits and lower barriers to capital movement.
The Nikkei gained 6.9%, marking the fourth straight year of growth, boosted by signs of an economic recovery. On the other hand, the growth was far below the 40% rise in 2005. China''s main market index more than doubled in 2006. The leading index in Shanghai gained 130.47%, while Hong Kong''s Hang Seng index posted a gain of 34.2% for the year. Jakarta soared 55% on tumbling interest rates. Mumbai''s Sensex rallied 47% on the outsourcing boom, takeovers and initial public offerings. Manila jumped 42% on improved economic outlook. Singapore climbed 25%, while Kuala Lumpur added 20.4%.
Key
emerging markets closed 2006 posting solid gains. Mexico''s Bolsa index surged 48.6% and Brazil''s Bovespa climbed 32.9%.
Despite strong global economy, some world markets finished 2006 in the negative territory.
Middle Eastern markets Dubai, Qatar and Saudi Arabia ended the year sharply lower. The main Saudi index tumbled 52.5% for the year.
| World Stock Exchange |
| Continent | Country | Stock Exchange | Symbol | Link | YTD % |
| America | Venezuela | Bolsa de Valores de Caracas | CSE | Website Link | 141% |
| America | Brazil | Bovespa | BOVESPA | Website Link | 32.90% |
| America | Mexico | Bolsa Mexicana de Valores | BMV | Website Link | 48.60% |
| America | USA | USE (DOW JONES) Stock Exchange | DOW | | 16.30% |
| America | USA | USE (Nasdaq) Stock Exchange | NASDAQ | Website Link | 9.50% |
| America | Peru | Bolsa de Valores de Lima - Peru | BVL | Website Link | 182.00% |
| Asia | Shanghai | Shanghai Stock Exchange | SSE | Website Link | 130.47% |
| Asia | Indonesia | Jakarta Stock Exchange | JSX | Website Link | 53.60% |
| Asia | India | Bombay Stock Exchange | BSE | Website Link | 47.00% |
| Asia | Hong Kong | Hong Kong Stock Exchange | HKSE | Website Link | 34.00% |
| Asia | Philippines | Philippines Stock Exchange | PSE | Website Link | 42.30% |
| Asia | Thailand | Stock Exchange of Thailand | SET | Website Link | 20.00% |
| Asia | Singapore | Singapore Exchange | SGX | Website Link | 25.00% |
| Asia | Taiwan | Taiwan Stock Exchange | TSE | Website Link | 19.50% |
| Asia | Malaysia | Kuala Lumpur Stock Exchange (Bursa Malaysia) | KLSE | Website Link | 20.40% |
| Asia | China | China Stock Exchange | | | 121.00% |
| Asia | Japan | Tokyo Stock Exchange | TSE | Website Link | 6.90% |
| Asia | Korea | Korea Stock Exchange | KOSPI | Website Link | 4.00% |
| Asia | Vietnam | Vietnam Stock Exchange | | | 135.40% |
| Asia | Pakistan | Karachi Stock Exchange | KSE 100 | Website Link | 4.90% |
| Asia | Kuwait | Kuwait Stock Exchange | KSE | Website Link | 12.00% |
| Asia | Saudi Arabia | Tadawul | TASI | Website Link | 53.00% |
| Asia | Oman | Oman Stock Exchange | | | 32.00% |
| Asia | United Arab Emirates | Dubai International Finacial Exchange | DIFX | Website Link | 43.00% |
| Europe | Russia | RTS Stock Exchange | RTS | Website Link | 65.50% |
| Europe | France | Euronext Paris (CAC 40) | CAC 40 | Website Link | 17.51% |
| Europe | Germany | Germany Stock Exchange | DAX 30 | Website Link | 22.00% |
| Europe | UK | London Stock Exchange | FTSE 100 | Website Link | 10.70% |
| Europe | Bulgaria | Bulgarian Stock Exchange | BSE | Website Link | 48.00% |
| Europe | Cyprus | Cyprus Stock Exchange | CSE | Website Link | 157.00% |
| Middle East - Africa | South Africa | Johannesburg Stock Exchange | JSE | Website Link | 37.50% |
| Middle East - Africa | Turkey | Istanbul Stock Exchange | ISE | Website Link | 1.00% |
| Middle East - Africa | Egypt | Cairo & Alexandria Stock Exchange | CASE | Website Link | 0.07% |
| Australia - Oceania | New Zealand | New Zealand Stock Exchange | NZX 50 | Website Link | 20.00% |
| Australia - Oceania | Australia | Australian Stock Exchange | ASX | Website Link | 19.00% |
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