What are the major financial markets in the world at a glance
What are the dimensions of the world stock markets also divided by macro areas. Is Asia also a winner in this sector? Let's try to understand it also through an interesting infographic by Visual Capitalist produced by Sabrina Lam
. Overall, the size of global stock markets has nearly tripled since 2003, reaching $109 trillion in total market capitalization.
Over the past few decades, growing money supply and extremely low interest rates have supported rising asset values across economies.
Given this context, the chart above shows the size of the global stock market in 2023, based on data from the World Federation of Exchanges (WFE) and the Securities Industry and Financial Markets Association (SIFMA).
With the deepest capital markets in the world, the United States accounts for 42.5% of global stock market capitalization, exceeding its closest economy, the European Union, by a significant margin.
Here are the major global stock markets by global market capitalization share as of Q2 2023:
Data as of Q2 2023. Numbers may not total 100 due to rounding.
Today, the market capitalization of US stock markets stands at more than $46.2 trillion.
Compared to other developed nations, U.S. stocks have often outperformed in recent decades. If an investor had invested $100 in the S&P 500 in 1990, this investment would have grown to about $2,000 in 2023, or four times the returns seen in other developed countries.
The second largest stock market is the European Union with 11.1% of the global share, followed by China with 10.6%.
Over the past 20 years, China's economy has grown about 12 times, reaching $19.4 trillion this year. China's stock markets have also grown considerably, fueled by the incorporation of China's domestic stocks into the MSCI Emerging Market Index in 2018, and before that, the internationalization of its stock markets in 2002.
Japan's stock markets account for 5.4% of the global share, followed by Hong Kong with 4%.
The future investment landscape
Goldman Sachs predicts that the US stock market capitalization will fall to 35% of the overall global market by 2030. Here's a complete picture of future markets
Meanwhile, emerging markets, including China and India, are expected to collectively reach the 35% mark over the same timeframe. By 2050, emerging markets' share is expected to far surpass that of the United States, reaching 47% of global stock markets.
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The article What are the major financial markets in the world at a glance comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/quali-sono-i-maggiori-mercati-finanziari-al-mondo-in-uno-sguardo/ on Sun, 19 Nov 2023 06:15:22 +0000.