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It’s late Europe, and stock markets are already closed. In Germany, the largest European Stock In the market, the tax index fell by -12.4%.
But it could have been worse.
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In late September or early October, the German stock market rose in tandem with the positive developments seen in global stock markets. As the central bank led the way in the world’s largest economy due to a slowdown in the prices of goods and services, U.S. stocks rose, and the positive vibe spread to the rest of the world.
Taxes would have spelled an even worse outcome for investors who had faith in the German stock market. One thing is for sure – Europe is not an easy place to invest in 2022.
This year taxes have come down significantly from 2018
Despite the bounce in recent months, taxes are still the lowest since 2018. It closed the year with 13923.59 points, and 31 out of 41 Dax components gave negative returns.
Among the positive performers, Beersdorf and RWE stood out from the crowd, +19% and +16% respectively on the year.
When the war in Ukraine started in February, as a result of Russia’s invasion of its neighbors, everything changed in the European space. Along with its allies, European countries have imposed economic sanctions against the invader. But sanctions also worked against European economies.
At a time when inflation has risen above the European Central Bank’s target, the war in Ukraine has only added to Europe’s already-existing energy crisis. Following the central bank’s path, the ECB raised rates, and it finished the year worse than the North American central bank.
Overall, the docs’ negative performance this year is nothing to celebrate. However, it outperformed US stocks in a tough environment for Europe.
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