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Recent trends observed in stock market growth worldwide

Over the past decade, stock markets have seen considerable growth. In Europe and Asia, indices achieved their record highs in 2019. Here are the details.

The Pace of Stock Market Growth in Recent Years

Since the devastating crisis of 2008, stock markets have shown a dramatic growth rate. In 2019, they even posted their best year globally. Despite international trade tensions, investors disregarded warnings of inevitable decline. Here are some of the most notable figures over the past 12 months.

Unexpected Results Recorded

Predictions of the International Monetary Fund for 2019 were grim. Global economic health was seen as the weakest since 2008. The entity warned of impending collapse citing limited resources of central banks. The trade war between Beijing and Washington was seen as another negative factor. However, the reality was very different.

Two Major Indices

First, consider the MSCI World Index. This finance indicator tracks stocks across the developed world. During 2019, it skyrocketed by almost 24%. Impressive on its own, the hike is also the strongest performance result since 2009. The European and Asian segments also drove the rally.

In Europe, the UK’s blue-chip stock index – the FTSE 100 – also jumped. With 12% of growth, it achieved its best performance in three years. Experts connect the uptrend with the late influx of funds, which occurred in the aftermath of the general election in December.

The index stood at 7,542 at the end of the year. This expressed a significant rise from 6,728 in 2018. Investors who suffered from a 12.5% slump a year prior, welcomed the turnaround. The record high, 7,903 points, was observed in May 2018.

Anyone aiming to profit from Thailand stock trading should follow relevant business news closely. Indice dynamics is vital for a trader. Both stocks and stock-based derivatives depend on values for separate shares. Indices reflect the collective performance of groups, such as growth stocks. Traders who buy CFDs on these assets know their value is highly unlikely to ever reach zero.

Zooming in on FTSE 100

Out of all FTSE 100 stocks, the top performer was Retailer JD Sports. The company’s shares gained 140%. An IT firm Aveva came second with a 90% hike. In the UK capital, the market also benefited from the post-election rebound.

Within two weeks after the Conservatives’ victory, the FTSE 100 grew by 5 percent. In terms of money volume, this amounted to an extra £100 billion. When the news broke, traders rushed to snatch shares in the UK firms.

Greece: Long-Awaited Recovery

Notable changes were also observed in Greek markets. The Athens General Index (ATG) of the country’s sixty largest companies gained roughly 50%. Over the course of the year, it climbed to 916 points.

As a consequence, investors regained interest in Greek stocks. Following the national bailout concluded in the summer of 2018, the country finally saw a reversal. The preceding 8 years of severe spending cuts and tax hikes were gloomy.

Back in 2007, the country was hit by the credit crunch. Before the disaster, ATG was five times more valuable than now. By 2010, it had only reached 2,000 points. Fortunately, now things are finally looking up.

Asia: China’s Successes

China showed a dramatic surge. During 2019, the country’s CSI 300 stock index gained 36%. The rise was attributed to the government’s monetary policies. These included cheaper borrowing and generous spending on infrastructure and construction.

Currencies and Commodities

Here are a few stats concerning currencies, the instrument of Forex trading.The British pound gained strength, although the ride was quite bumpy. 2019 opened with 1.275 for the GBP/USD pair. By fall, it had dropped below 1.20 due to the anxiety surrounding Brexit.

Next, the growth was resumed, reaching a peak of 1.35 after Boris Johnson got elected. However, by the end of the year, a dip to 1.31 had happened. This was interpreted as investors’ reaction to potential conflicts over the free trade deal.

In the realm of precious metals, gold experienced a drastic surge. At 1,525 USD per ounce, it had grown five-fold since early 2019. Moreover, this rise was the biggest in almost a decade. This was attributed to investors’ urge to find a safe haven for capital.

Using Stock Indice Movements

Today, the stock market is more accessible than ever before. With a computer and digital platform, anyone can trade separate stocks or indices through a broker. Both ups and downs on the stock exchange may bring profits to shrewd traders of shares and derivatives, such as Contracts for Difference.

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