Stock markets worldwide have been on a torrid run during 2019, making gains worth more than $17 trillion in total value, Deutsche Bank’s latest calculations showed on Wednesday.
The value of global equities started the year just below $70 trillion but has now exceeded $85 trillion, according to a chart from Deutsche Bank’s Torsten Slok.
The gains were buoyed by easier monetary policy and political developments around the globe.
Central banks worldwide have adopted a more dovish approach, boosting markets. For instance, the U.S. Federal Reserve has cut its benchmark interest rate three times this year, and the European Central Bank (ECB) lowered its already negative rates even further.
The global trade outlook — witnessing turmoil since the election of U.S. President Donald Trump and the vote for Brexit in the United Kingdom — also became more clear during the year.
The large climb for world stock markets has been widely dominated by the U.S. markets. The rally in the U.S. has been broad, with the S&P 500, Dow Jones Industrial Average, and Russell 2000 all growing more than 20 percent during 2019.
On the U.S. trade fronts, the House of Representatives passed the new North America trade deal from the Trump administration. The country eventually reached a preliminary deal with China in phase one of trade negotiations.
In Europe, the resounding victory for UK Prime Minister Boris Johnson – from Conservatives Party – is expected to give him the authority to negotiate the country’s long-awaited exit from the European Union.
Big years for some of the globe’s most valuable companies, such as an 80 percent gain for Apple and a 57 percent gain for Facebook, have helped trigger the surge.
Source: Reuters
