From the peak of the tech bubble in early 2000 the returns on the stock market have been underwhelming. In fact, if you line up the peak of the market in 2000 with the peak of the market in 1929 just before the stock market collapsed, the returns aren’t that far off:
Although the Great Depression was far more severe than what we experienced during the Great Recession, there are some similarities that these time frames share. There were two massive bear markets in the 1930s along with two recessions that saw stocks fall over 80% from 1929-1932 and another 50% in 1937. In the latest period, stocks were cut in half in both the 2000-2002 and 2007-2009 bear markets.
Here’s the breakdown of how government bond yields and long-term valuations changed over each period as well:
Rising steel prices and a one-off boost from a labour deal saw ArcelorMittal, the world’s biggest producer of the metal, post a sharp increase in second-quarter profits as it cast a cautiously confident gaze across the rest of 2016.
The Luxembourg-based company said net income was $1.1bn in the three months to the end of June, helped by an exceptional gain of $0.8m relating to employee benefits following the signing of a new contract with its US workers
This compared to a net loss of $0.4bn in the preceding quarter, or net income of $0.2bn in the same period a year earlier.
After being hit by a dramatic slide in the value of the commodity last year, steelmakers have seen prices for the metal rise throughout 2016, although this has tailed off in recent weeks.
Nevertheless, ArcelorMittal, which resorted to a $3bn capital raise earlier this year to reduce debt, remained confident in its prospects.
France’s economy ground to a halt between April and June, according to official estimates, which will do little to lift already fragile confidence in President François Hollande’s government.
Growth in the second quarter was flat from an upwardly-revised 0.7 per cent in the first quarter. Prior to today’s release, economists had forecast quarterly growth to drop, but for the economy to still eke out 0.2 per cent expansion.
Year-on-year the economy grew 1.4 per cent, less than the 1.6 per cent economists were looking for but stronger than the 1.3 per cent recorded for the first quarter.
A wave of strikes in protest at labour market reforms disrupted the economy during the second quarter. The reforms are designed to increase flexibility in the country’s notoriously rigid jobs market but have proved highly contentious with unions and young people.
Recent survey data has suggested France’s manufacturing sector is deep in contraction territory. The spate of terrorist attacks have also raised concerns that France’s tourism industry will be take a significant knock.
Air France-KLM warned earlier this week that there was a “special concern” among air passengers about France as a destination.