{"id":619317,"date":"2023-03-18T10:53:11","date_gmt":"2023-03-18T15:53:11","guid":{"rendered":"https:\/\/news.sellorbuyhomefast.com\/index.php\/2023\/03\/18\/wfe-global-stock-market-lost-25-trillion-in-2022\/"},"modified":"2023-03-18T10:53:11","modified_gmt":"2023-03-18T15:53:11","slug":"wfe-global-stock-market-lost-25-trillion-in-2022","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2023\/03\/18\/wfe-global-stock-market-lost-25-trillion-in-2022\/","title":{"rendered":"WFE: Global Stock Market Lost $25 Trillion in 2022"},"content":{"rendered":"
\n

The market capitalization of the
\nglobal stock market declined by 20% in 2022, wiping off about $25 trillion from
\nthe market, the World Federation of Exchanges disclosed in its latest report
\nreleased on Friday. The value of the market also decreased by 10% last year,
\nthe report noted. <\/p>\n

Both declines contradict the
\npositive momentum gained two years earlier, WFE, a group that represents
\nexchanges and central clearing<\/span><\/span> <\/span> counterparties, pointed out. However,
\ndespite the drop in market cap, global volumes jumped by 5% in 2022, pushed by
\nincreases across all regions.<\/p>\n

\u201c2022 recorded the highest
\nglobal volumes in the last six years (48.32 billion trades) and the highest
\nregional volumes during the same period: the Americas (13.44 billion trades),
\nAPAC (31.13 billion trades) and the EMEA region (3.74 billion trades),\u201d WFE
\nexplained in the report. <\/p>\n

\u2018Perfect Storm of Negative
\nPressures\u2019<\/h2>\n

According to WFE, a number of
\nfactors contributed to the slump in the market cap of last year. This includes the capital injection in the aftermath of the COVID-19
\npandemic<\/a> and the resultant inflation powered by high consumer demand. In
\naddition, supply constraints worsened by the Russia-Ukraine war and the
\nsanctions against Russia contributed to the situation by increasing energy
\nprices, especially in Europe<\/a>.<\/p>\n

\u201cChina\u2019s renewed Covid lockdown,
\nwith stringent measures enforced for most of the year, strained the global
\nsupply chain, increasing prices of imported goods,\u201d WFE noted. <\/p>\n

The industry group further noted
\nthat investment slowed down in the equity market as a result of the high
\ninflation environment and the tightening of monetary policies which fueled raising interest rates across most economies.<\/p>\n

\u201cWe witnessed a perfect storm in
\n2022 of so many negative pressures culminating to bring immense pressure on global stock markets<\/a>, as our report highlights,\u201d Nandini Sukumar, Chief
\nExecutive Officer at the WFE, noted.<\/p>\n

Derivatives Return Good Numbers<\/h2>\n

However, despite the gloomy
\nfigure, WFE\u2019s data shows that exchange<\/span><\/span> <\/span>-traded derivatives, which included both
\noptions and futures contracts<\/a>, surged by 34.4% year-over-year, reached their
\nhighest level in six years. The volume of contracts amounted to 84.76 billion
\nderivatives contracts, with 56.17 billion attributable to options and 29.59
\nbillion to futures.<\/p>\n

\u201cCommodity derivatives were the
\nonly product line whose overall volumes (that is, considering both futures and
\noptions) declined in 2022 (-14.5%), while equity, currency, and ETF derivatives
\nvolumes witnessed double digit increases (48.4%, 48.2%, and 36.9%,
\nrespectively),\u201d the report explained.<\/p>\n

ETF Volume Jumps in 2022<\/h3>\n

Furthermore, WFE data shows that
\nwhile the number of listed exchange-traded funds (ETFs) rose only 5%
\nyear-over-year, the value of traded ETFs jumped by 32.2%, pushed by increases
\nfrom every region of the world. Additionally, the number of
\nlisted securitized derivatives rose slightly by 2.6% year-over-year. On the
\ncontrary, the value of traded securitized derivatives slumped by 21.6% year-over-year
\ndue to decreases in every region.<\/p>\n

WFE added, \u201cThe
\nnumber of listed investment funds (IF) fell year-on-year (-6.1%) while the
\nvalue traded increased 12.5%. EMEA region recorded declines in both the number
\nof listed investment funds and in value traded, while in the Americas both
\nchanges were positive. The APAC region recorded the largest drop in the number
\nof listed funds and the largest increase in value traded.\u201d<\/p>\n<\/div>\n

\n

The market capitalization of the
\nglobal stock market declined by 20% in 2022, wiping off about $25 trillion from
\nthe market, the World Federation of Exchanges disclosed in its latest report
\nreleased on Friday. The value of the market also decreased by 10% last year,
\nthe report noted. <\/p>\n

Both declines contradict the
\npositive momentum gained two years earlier, WFE, a group that represents
\nexchanges and central clearing<\/span><\/span> <\/span> counterparties, pointed out. However,
\ndespite the drop in market cap, global volumes jumped by 5% in 2022, pushed by
\nincreases across all regions.<\/p>\n

\u201c2022 recorded the highest
\nglobal volumes in the last six years (48.32 billion trades) and the highest
\nregional volumes during the same period: the Americas (13.44 billion trades),
\nAPAC (31.13 billion trades) and the EMEA region (3.74 billion trades),\u201d WFE
\nexplained in the report. <\/p>\n

\u2018Perfect Storm of Negative
\nPressures\u2019<\/h2>\n

According to WFE, a number of
\nfactors contributed to the slump in the market cap of last year. This includes the capital injection in the aftermath of the COVID-19
\npandemic<\/a> and the resultant inflation powered by high consumer demand. In
\naddition, supply constraints worsened by the Russia-Ukraine war and the
\nsanctions against Russia contributed to the situation by increasing energy
\nprices, especially in Europe<\/a>.<\/p>\n

\u201cChina\u2019s renewed Covid lockdown,
\nwith stringent measures enforced for most of the year, strained the global
\nsupply chain, increasing prices of imported goods,\u201d WFE noted. <\/p>\n

The industry group further noted
\nthat investment slowed down in the equity market as a result of the high
\ninflation environment and the tightening of monetary policies which fueled raising interest rates across most economies.<\/p>\n

\u201cWe witnessed a perfect storm in
\n2022 of so many negative pressures culminating to bring immense pressure on global stock markets<\/a>, as our report highlights,\u201d Nandini Sukumar, Chief
\nExecutive Officer at the WFE, noted.<\/p>\n

Derivatives Return Good Numbers<\/h2>\n

However, despite the gloomy
\nfigure, WFE\u2019s data shows that exchange<\/span><\/span> <\/span>-traded derivatives, which included both
\noptions and futures contracts<\/a>, surged by 34.4% year-over-year, reached their
\nhighest level in six years. The volume of contracts amounted to 84.76 billion
\nderivatives contracts, with 56.17 billion attributable to options and 29.59
\nbillion to futures.<\/p>\n

\u201cCommodity derivatives were the
\nonly product line whose overall volumes (that is, considering both futures and
\noptions) declined in 2022 (-14.5%), while equity, currency, and ETF derivatives
\nvolumes witnessed double digit increases (48.4%, 48.2%, and 36.9%,
\nrespectively),\u201d the report explained.<\/p>\n

ETF Volume Jumps in 2022<\/h3>\n

Furthermore, WFE data shows that
\nwhile the number of listed exchange-traded funds (ETFs) rose only 5%
\nyear-over-year, the value of traded ETFs jumped by 32.2%, pushed by increases
\nfrom every region of the world. Additionally, the number of
\nlisted securitized derivatives rose slightly by 2.6% year-over-year. On the
\ncontrary, the value of traded securitized derivatives slumped by 21.6% year-over-year
\ndue to decreases in every region.<\/p>\n

WFE added, \u201cThe
\nnumber of listed investment funds (IF) fell year-on-year (-6.1%) while the
\nvalue traded increased 12.5%. EMEA region recorded declines in both the number
\nof listed investment funds and in value traded, while in the Americas both
\nchanges were positive. The APAC region recorded the largest drop in the number
\nof listed funds and the largest increase in value traded.\u201d<\/p>\n<\/div>\n

Read More<\/a>
\n Solomon Oladipupo<\/p>\n","protected":false},"excerpt":{"rendered":"

The market capitalization of the global stock market declined by 20% in 2022, wiping off about $25 trillion from the market, the World Federation of Exchanges disclosed in its latest report released on Friday. The value of the market also decreased by 10% last year, the report noted. Both declines contradict the positive momentum gained<\/p>\n","protected":false},"author":1,"featured_media":619318,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1424,112],"tags":[],"class_list":{"0":"post-619317","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-global","8":"category-stock"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/619317","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=619317"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/619317\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/619318"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=619317"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=619317"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=619317"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}