The Best of 2024 in Financial Markets

The financial markets in 2024 have been nothing short of a rollercoaster ride, shaped by central bank policies, geopolitical dramas, the United States presidential elections, and sector-driven trends.

Major currencies danced to the tune of interest rate changes, metals mirrored global economic jitters, and energy CFDs soared amid supply concerns. Cryptocurrencies started as unpredictable but have shown a remarkable uptrend since September. Indices mirrored broader market trends, shaped by technological advancements.

Ready to dive in? Let’s explore the year-to-date performance of these key markets as of December 23, 2024, and see what made this year one to remember.

Currencies

The foreign exchange market in 2024 was dominated by the U.S. dollar, as reflected in the year-to-date performance of various currency pairs.

Currency Pair 2024 YTD Change (%)

• Dollar Index (DXY): Fluctuations were driven by Federal Reserve policies, moving toward a looser monetary stance. A rally was bolstered by expectations following Donald Trump's election.
• Japanese Yen: Central Bank inaction on rate hikes and political shifts resulted in the largest depreciation against the dollar.
• Euro: Political uncertainties in Europe and Germany's economic struggles contributed to the euro's negative performance.
• British Pound: Dovish expectations for 2025 and anticipated rate cuts led to the pound’s underperformance.
• New Zealand Dollar: A recession and interest rate cuts made it the second-largest loser against the dollar.
• Canadian & Australian Dollars: Volatility in oil and metal prices, coupled with rapid rate cuts by the Bank of Canada, contributed to declines.

Metals

Precious metals showed positive trends in 2024, supported by Federal Reserve rate cuts and geopolitical tensions.

Metals 2024 YTD Change (%)

• Gold and Silver: Central bank demand and increased reserves drove gold prices higher. However, weak economic performance in China pressured silver demand.
• Copper: The metal faced challenges from China’s slow economy.
• Platinum: The shift toward electric vehicles and subdued industrial demand due to China’s slowdown weighed on prices.

Energy CFDs

Natural gas saw a significant rally, while crude oil and Brent crude ended the year in negative territory.

Energy CFD 2024 YTD Change (%)

• Natural Gas: Strong global LNG demand and reduced imports from Russia via Ukraine supported prices.
• Crude Oil & Brent: Prices were influenced by global supply-demand dynamics and geopolitical uncertainties.

Cryptocurrencies

The cryptocurrency market thrived in 2024, buoyed by monetary policy easing and political developments.

Cryptocurrency 2024 YTD Change (%)

The Federal Reserve's easing measures and expectations of Donald Trump’s presidency contributed to the rally across major cryptocurrencies.

Indices

Global indices saw strong performance overall, driven by central bank interest rate cuts.

Equity Indices 2024 YTD Change (%)

• U.S. Indices: The Nasdaq and S&P 500 led the way with strong gains.
• European Indices: The DE40 (Germany) outperformed its UK counterpart, the UK100, which lagged behind.