Important Information

You are visiting the international Vantage Markets website, distinct from the website operated by Vantage Global Prime LLP
( www.vantagemarkets.co.uk ) which is regulated by the Financial Conduct Authority ("FCA").

This website is managed by Vantage Markets' international entities, and it's important to emphasise that they are not subject to regulation by the FCA in the UK. Therefore, you must understand that you will not have the FCA’s protection when investing through this website – for example:

  • You will not be guaranteed Negative Balance Protection
  • You will not be protected by FCA’s leverage restrictions
  • You will not have the right to settle disputes via the Financial Ombudsman Service (FOS)
  • You will not be protected by Financial Services Compensation Scheme (FSCS)
  • Any monies deposited will not be afforded the protection required under the FCA Client Assets Sourcebook. The level of protection for your funds will be determined by the regulations of the relevant local regulator.

If you would like to proceed and visit this website, you acknowledge and confirm the following:

  • 1.The website is owned by Vantage Markets' international entities and not by Vantage Global Prime LLP, which is regulated by the FCA.
  • 2.Vantage Global Limited, or any of the Vantage Markets international entities, are neither based in the UK nor licensed by the FCA.
  • 3.You are accessing the website at your own initiative and have not been solicited by Vantage Global Limited in any way.
  • 4.Investing through this website does not grant you the protections provided by the FCA.
  • 5.Should you choose to invest through this website or with any of the international Vantage Markets entities, you will be subject to the rules and regulations of the relevant international regulatory authorities, not the FCA.

Vantage wants to make it clear that we are duly licensed and authorised to offer the services and financial derivative products listed on our website. Individuals accessing this website and registering a trading account do so entirely of their own volition and without prior solicitation.

By confirming your decision to proceed with entering the website, you hereby affirm that this decision was solely initiated by you, and no solicitation has been made by any Vantage entity.

I confirm my intention to proceed and enter this website Please direct me to the website operated by Vantage Global Prime LLP, regulated by the FCA in the United Kingdom

By providing your email and proceeding to create an account on this website, you acknowledge that you will be opening an account with Vantage Global Limited, regulated by the Vanuatu Financial Services Commission (VFSC), and not the UK Financial Conduct Authority (FCA).

    Please tick all to proceed

  • Please tick the checkbox to proceed
  • Please tick the checkbox to proceed
Proceed Please direct me to website operated by Vantage Global Prime LLP, regulated by the FCA in the United Kingdom.

×

Watch Reborn a Trader

row

View More
SEARCH
  • All
    Trading
    Platforms
    Academy
    Analysis
    Promotions
    About
  • Search
Keywords
  • Forex Trading
  • Vantage Rewards
  • Spreads
  • facebook
  • instagram
  • twitter
  • linkedin
  • youtube
  • spotify
7 Key Market Events in 2022 And How They Shifted the Market 

TABLE OF CONTENTS

7 Key Market Events in 2022 And How They Shifted the Market 

7 Key Market Events in 2022 And How They Shifted the Market 

Vantage By Kong Seng Kit Updated Updated Fri, 2022 December 30 09:12

The year 2022 has been filled with market-moving events, ranging from political movements to company takeovers, the great fall of some crypto coins, and even a war.  As the year has come to an end, let’s take a look back at how 2022 unfolded, by highlighting the key market events that any trader or non-trader would need to know about. 

 1. Russia-Ukraine War 

Just a few days after the Beijing 2022 Winter Olympics ended, the world was shocked to learn that Russian President Vladimir Putin announced a military operation in Ukraine on 24 February 2022. This marked the start of the Russia-Ukraine war that has been ongoing till this day. The war has further escalated the global supply chain crisis, which was already facing massive disruption due to the Covid-19 pandemic. 

As the war has escalated, the European Union imposed massive and unprecedented sanctions against Russia in response to the military aggression against Ukraine. Similarly, the US also imposed a ban on Russian oil. These sanctions made up 45% of Russia’s federal budget in 2021 [1]

The international benchmark Brent crude surpassed $100 a barrel for the first time since 2014 before closing at $99.08 per barrel at the end of 24 February 2022. On 8 March 2022, the benchmark saw the price of a barrel achieving an all-time high of $127.98 per barrel. The price surged after US President, Joe Biden, announced that the US would ban imports of Russian energy and the UK announced it would phase out Russian products by the end of the year [2]

2. The Assassination of Shinzo Abe 

Shinzo Abe was the former prime minister of Japan. He was assassinated on 8 July 2022 while speaking at a political event outside a train station in Nara. Shinzo Abe was best known for his signature economic policy, “Abenomics”. Shinzo Abe’s death could affect the Bank of Japan’s ultra-loose monetary policy, which might not be a positive signal to the stock market. 

The Nikkei index climbed as much as 1.4% earlier in the session. However, it ended with just a 0.1% increase at the end of the day and with the news of Shinzo Abe’s assassination. The broader TOPIX index also cut most of its gain to close 0.27% higher at the end of the day [3]

3. Queen Elizabeth II Passing 

On 8 September 2022, the world was shocked by the passing of Queen Elizabeth II, one of the longest-reigning British Monarchs. In light of the event, the BoE delayed its interest rate decision by a week due to royal mourning. The FTSE 100 Index closed at 1.4% higher on 9 September 2022, just a day after the news, with mining companies leading the way thanks to a softening dollar [4]

4. Liz Truss Resignation 

The leader of the governing Conservative party in the UK, Liz Truss, who took office after Johnson Boris, officially announced her intention to resign on 20 October 2022. This made her the shortest-serving prime minister in UK history, serving just 44 days in the office. 

In the short period of her time in the office, she made an impact on the UK economy with her proposed monetary policies. These massive tax cuts and substantial spending plans aimed to boost the country’s economic growth. However, it came just a day after the Bank of England (BoE) hiked interest rates to contain the surging inflation [5]

This move led the British Pound to fall to an all-time low against the US Dollar as both investors and traders were not convinced with this approach. The BoE was also forced to step in to support the bond market and prevent a possible broader economic collapse on 26 September 2022, just three days after the announcement of the proposed monetary policy [6]

On the day of her resignation announcement, the FTSE 100 Index rose 0.3%, closing at 6943.91 GBP [7]. Liz Truss was subsequently succeeded by Rishi Sunak who made history as the first British Asian and Hindu to be Britain’s prime minister.  

5. Europe Fuel Crisis and OPEC Oil Cut 

Since 31 August 2022, Russia has indefinitely cut off gas supplies to Europe in response to the Western sanctions imposed on the country since its conflict with Ukraine. This threw Europe into its biggest fuel and energy crisis this year. Countries are competing to buy liquified natural gas (LNG) and find alternative sources. In addition, the Organization of the Petroleum Exporting Countries (OPEC) also announced a new policy where they would continue to restrict supply by 2 million barrels per day, a policy that will continue to run through the end of 2023 [8]

The OPEC alliance is said to have adopted this move in order to proactively adjust supply ahead of a possible reduction in demand due to the slowing global economy. Oil prices have been slowly recovering early this year since the pandemic in 2020. International benchmark Brent crude was down 29.7% from early June when it was trading at over $123.58 per barrel [9]. It was trading at $86.88 on 1 December 2022, one month since the policy announcement by OPEC. 

6. China Easing of Zero-Covid Policy 

In early December 2022, it was widely reported that mass public protests set off in various Chinese cities over China’s stringent zero-Covid restrictions. It was reportedly triggered by a deadly fire which broke out in a residential building under the Covid-19 lockdown in Urumqi. The pandemic control barriers may have prevented residents from escaping and hindered firefighters’ attempts to rescue those who were trapped inside, killing ten people and injuring nine others. The protests have led to the relaxation of some strict pandemic control restrictions in December [10]

On 7 December 2022, China was set to announce the most sweeping changes to its resolute anti-covid regime and loosening rules that curbed the spread of the virus [11]. Hong Kong’s Hang Seng Index, which is heavily weighted toward Chinese companies, has climbed more than 28.8% since the start of November and achieved its highest on 9 December 2022, closing at 19,900.87 HKD [12]. The Mainland China CSI 300 Index climbed more than 10.02% since the start of November and closed at 3998.24 on 9 December 2022 [13]. On 27 December 2022, China announced that it will remove the quarantine requirements for travellers from 8 January 2023, as part of the country’s shift from its zero-Covid policy. 

7. The US Federal Reserve Continuous Rate Hike 

The US Federal Reserve has raised the fed’s funds rate seven times this year. In January, the Federal Funds Rate was at 0% to 0.25% and now fast forward to December it sits at 4.25% to 4.50%. These interest rate hikes come on the back of multi-decade-high inflation rates, hitting 9.1% in June [14]

The continuous rate hikes indicate that its fight against inflation is still ongoing, despite a reduction at the last hike, which was by 50 basis points. This has pushed the borrowing costs to the highest level since 2007 and is in line with market expectations. Chairman of the US Federal Reserve, Jerome Powell, mentioned that the Federal Reserve will deliver more interest rate hikes in 2023 as the economy is slipping towards a possible recession [15]

As the news of the latest rate hike was announced on 14 December 2022, the Dow Jones Industrial Average dropped 0.42%, the S&P 500 dropped 0.61%, and the Nasdaq Composite dropped 0.76%, showing the concerns that traders and investors have about the upcoming indication of more rate hikes in 2023 [16]

Conclusion 

Learning and understanding how the market reacts to certain key events will help traders and investors both to trade smarter. By learning from these now-historical events, traders can be better prepared to face similar types of key events, should they happen again in the future. 

Follow Vantage social platform on Instagram and we will keep you updated with all the latest news, market insights and upcoming market events. 

Sign up for Vantage free weekly webinar that will break down the current markets as well as discuss potential upcoming trade set ups. 

References

  1. “Energy Fact Sheet: Why does Russian oil and gas matter? – IEA”.  https://www.iea.org/articles/energy-fact-sheet-why-does-russian-oil-and-gas-matter. Accessed 16 Dec 2022. 
  2. “Oil Extends Gains with U.S. and U.K. Bannning Russian Imports – Bloomberg”.  https://www.bloomberg.com/news/articles/2022-03-07/oil-keeps-rising-as-russian-invasion-reverberates-across-markets?leadSource=uverify%20wall. Accessed 19 Dec 2022. 
  3. “Asian Stocks Mixed as Ex-Japan PM Abe’s Death Stuns Markets – Asia Financial”.  https://www.asiafinancial.com/asian-stocks-mixed-as-ex-japan-pm-abes-death-stuns-markets. Accessed 19 Dec 2022.
  4. “FTSE rises as King Charles III becomes monarch after death of the Queen – Yahoo News”.  https://finance.yahoo.com/news/ftse-100-economic-political-sentiment-081835932.html. Accessed 29 Dec 2022.
  5. “Britain sends investors fleeing with historic tax cuts and borrowing – Reuters”. https://www.reuters.com/markets/europe/new-uk-finance-minister-kwarteng-seeks-end-cycle-stagnation-2022-09-23/. Accessed 19 Dec 2022. 
  6. “Bank of England to buy 65 billion pounds of UK bonds to stem rout – Reuters” https://www.reuters.com/markets/europe/bank-england-buy-long-dated-bonds-suspends-gilt-sales-2022-09-28/ Accessed  19 Dec 2022 
  7. “FTSE 100 closes in the green after Liz Truss resigns as UK prime minister – Yahoo Finance” https://finance.yahoo.com/news/ftse-100-economic-political-sentiment-081835932.html Accessed 29 Dec 2022 
  8. “OPEC sticks with supply cuts as West tightens sanctions on Russian oil – CNN Business” https://edition.cnn.com/2022/12/04/energy/opec-production-oil-prices/index.html Accessed 20 Dec 2022 
  9. “OPEC’s Oil Production Cut Will Cause More Pain At The Pump – Forbes Advisor” https://www.forbes.com/advisor/personal-finance/opec-production-cut/ Accessed 20 Dec 2022. 
  10. “China Eases ‘Zero Covid’ Restrictions in Victory for Protesters – The New York Times” https://www.nytimes.com/2022/12/07/world/asia/china-zero-covid-protests.html Accessed 21 Dec 2022 
  11. “‘We’re going to be free’: Chinese cheer as COVID curbs are loosened – Reuters” https://www.reuters.com/world/china/chinas-hopes-looser-covid-rules-sets-off-rush-fever-drugs-2022-12-07/ Accessed 21 Dec 2022 
  12. “Hang Seng Index -Yahoo Finance” https://finance.yahoo.com/quote/%5EHSI/history?period1=1635724800&period2=1671494400&interval=1d&filter=history&frequency=1d&includeAdjustedClose=true Accessed 21 Dec 2022 
  13. “CSI 300 Index – Market Watch” https://www.marketwatch.com/investing/index/000300/download-data?startDate=11/1/2022&endDate=12/19/2022&countryCode=xx Accessed 21 Dec 2022 
  14. “U.S. inflation jumped by 9.1% in June, a four-decade high: Here’s what you need to know about inflation – CNBC” https://www.cnbc.com/2022/07/14/us-inflation-jumped-by-9point1percent-in-june-a-four-decade-high-heres-what-you-need-to-know-about-inflation.html Accessed 27 Dec 2022 
  15. “Fed’s Powell says inflation battle not won, more rate hikes coming – Reuters” https://www.reuters.com/markets/us/fed-set-slow-pace-rate-hikes-inflation-grinch-loses-steam-2022-12-14/ Accessed 29 Dec 2022 
  16. “S&P 500 snaps 2-day winning streak after Fed raises rate and signals more hikes next year – CNBC” https://www.cnbc.com/2022/12/13/stock-market-futures-open-to-close-news.html Accessed 21 Dec 2022
  • vantage academy open account

    Open Trading Account

    Discover the endless trading possibilities with our cutting-edge platform, designed to empower both beginners and seasoned traders alike.

  • vantage academy app

    Download Vantage App

    Trade on the go with the Vantage All-In-One Trading App, where smooth execution and market access come together in the palm of your hand.

  • vantage academy start trading

    Start Trading

    Are you an existing user? Login to your account to start trading 1,000+ products including forex, indices, gold, shares and more.