The World Federation of Exchanges has revealed in a report that the global stock market capitalization has declined by an unprecedented 20%, which resulted in the elimination of around $25 trillion from global markets. Moreover, the value of the market had also decreased last year, the report revealed. These two declines are a counter measure to the 2020-2021 spikes in market usage due to the covid lockdown policies and the subsequent boom in investment interest. And yet, in 2022, the federation reveals, there was a 5% jump in global trading volumes.
A number of determinants affected the global markets last year:
- The COVID 19 pandemic was a great game changer, including its aftermath which resulted in global inflation levels produced by rising consumer demands. But also, China’s 2022 continued covid lockdown affected the the global supply chain, resulting in increased prices.
- The we also had the overall high inflation caused by other factors that slowed down investments in the equity market, which ultimately resulted in high interest rates for many economies.
- Last but not least, the war in Ukraine had a massive impact on global markets, whether you like it or not. The sanctions against the Russian economy and the country’s decision to cease energy trades have increased global inflation and has raised the pricing on may basic products and services.
And yet, the agency also recorded the highest ever global trading volumes in the last six years. In 2022, 48.32 billion trades were made, with 13.44 billion made in the Americas, 3.74 billion trades in the Europe-Middle East-Africa region, and 31.13 billion in the Asia-Pacific area.
