Recent US economic data has been stronger than expected. Domestic unemployment is now at a 53-year low, while retail sales and business activity, particularly in the services sector, have accelerated.

Tensions between the US and China rose after the US shot down a balloon, which it alleged that China was using for the purposes of espionage. The US also warned China against supplying Russia with weapons, saying it could risk escalating the war in Ukraine.

Artificial Intelligence, or AI, has long been hailed as the most significant technological leap since the Industrial Revolution. After decades in development, AI could now finally be fulfilling its promise.

Ukraine marked the anniversary of Russia’s invasion, as President Biden, on a surprise visit to Kyiv, promised ‘unwavering support’. Energy price volatility remains high on the agenda, and with it the possibility of sticky inflation.

Inflation readings continued on a downward path, with the US and Europe as stand out examples. Nonetheless, western central banks maintained their hawkish rhetoric, with the European Central Bank in particular keen to forecast further interest rate hikes ‘at a stable pace’.

The headline rate of inflation continued to fall across most economies. US consumer prices rose at an annual rate of 6.5% for December, the lowest rate since October 2021, while headline eurozone inflation eased to 9.2% compared to a peak of 10.6% in October 2022.

China’s vast urban population was unlocked from Covid restrictions in time to travel home for the Lunar New Year. With over 2 billion journeys, it’s the biggest mass migration in the world. Concerns were raised that this potential Covid ‘super spreader’ event would overwhelm rural healthcare systems.

As all investors know, a dividend is a reward paid to shareholders for owning a company with sustainable profits. Used in the context of a nation’s population, the term ‘demographic dividend’ describes the positive effects that a growing population can have on a whole economy.

Confidence mounted that the point of peak inflation had passed, as readings from the US and Europe came in lower than forecast. Nonetheless, the ‘higher for longer’ message remains top of the central banks’ agenda, despite recommendations that the pace of interest rate cuts should be reined back.

Bond investors have been in for a rough ride over the past couple of years, with 2022 the second consecutive year of negative returns (tbc) for holders of fixed income securities. Yet the protracted sell-off could now mean that bonds are looking attractive again.

China pivoted away from its zero-Covid policy, with the authorities refocusing on consumption and industries such as technology and property. Infection levels surged as testing and quarantine requirements were removed.

It’s a term that’s much heard these days, as markets try to forecast the shape of the current cycle of interest rates. And crucially to predict the peak rate for the cycle.

The European Union announced a price cap of $60 a barrel on Russian oil exports. The deal prohibits the insurance of any tankers from G7 nations carrying oil at a greater price, which briefly left dozens of tankers queueing at the mouth of the Black Sea.

Mounting hopes of a pivot in interest rate policy continued to drive the markets. Fed chair Jay Powell suggested that the phase of ‘jumbo’ hikes could soon be over, with the latest hike in rates at only 50 basis points. Nonetheless, the ‘higher for longer’ message on interest rates was reinforced.

2022 was the year of inflation and interest rate hikes. The invasion of Ukraine sent energy prices soaring and pushed inflation to multi-decade highs. And central banks put their foot on the gas with rapid rate hikes. Equity bear markets were commonplace, while bond markets suffered a sharp sell off. We present the pick of the Quick Looks as the year unwound.

Over time, there have been various occasions where we have seen large falls in the price of the stock market. Some - such as the 2008 Global Financial crisis - have taken a long time to recover from, whilst others have been relatively short-term and reflective of the natural volatility all investors experience when investing in the stock market.

China might be easing its strict zero-Covid policy, following a month of widespread protests and a sharp slowdown in economic activity. Despite record high infection levels, there appears to have been a shift in emphasis recently.

There is an old Chinese curse, which goes ‘May you live in interesting times’. As we come to the end of a chaotic year, with barely a dull moment, the full meaning of that curse has become clearer.