Global Financial Markets in 2020: Preliminary Results

Alexander E. Abramov – Head of Department for Analysis of Institutions and Financial Markets of the Russian Presidential Academy of National Economy and Public Administration, Candidate of Economic Sciences (Moscow, Russia). Е-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Andrey G. Kosyrev – Younger Researcher of the Russian Presidential Academy of National Economy and Public Administration (Moscow, Russia). E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Alexander D. Radygin – Member of the Directors Board of the Gaidar Institute; Director of the Institute of Mathematics and Information Technology Economics, Russian Presidential Academy of National Economy and Public Administration, Doctor of Economic Sciences, Professor (Moscow, Russia). Е-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Maria I. Chernova – Researcher of the Russian Presidential Academy of National Economy and Public Administration (Moscow, Russia). Е-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Despite the pandemic and economic recession, the year 2020 can be regarded as quite successful for numerous financial markets in terms of appreciation of various currencies against the US Dollar and equity indices’ positive yield. The Russian ruble was among the weakest currencies and the RTS index yield was negative. With the Russian ruble and Russian companies’ equities being undervalued in 2020, one can expect the strengthening of the Russian national currency and equities’ positive rate of return in 2021.

Economic relief packages put in place by a host of countries have been instrumental in mitigating the pandemic’s implications and hold out a hope of growth revival in 2021. However, after the pandemic most major economies will face the challenge of raising their global competitive edge and carrying out structural reforms. As seen from China’s experience, in dealing with the specified challenges they give preference explicitly to the idea of the state’s greater interference in the economy. It remains to be seen to what extent such a policy is effective and needed in other countries.

Key words: financial markets, share indexes, currency rates, China’s economy.