Quick Bites | World stock markets reach record highs

With wars in Ukraine and the Middle East, ongoing geopolitical tensions between the world’s 2 largest economies, interest rates still high with sticky inflation, and many national elections to be held this year, the world’s stock markets are reaching new highs despite all those problems and uncertainties.

Source: Ed Yardeni 


This is occurring despite the UK and Japan being in recessions, and with Germany close to falling into recession. It is occurring despite China’s property bubble having burst, which is depressing the Chinese economy and weighing on other Asian economies. And it is occurring despite weakness in commodity prices: the S&P Goldman Sachs Commodity Price index is down 31% from its March 2022 peak (see chart below).

Commodity price peaks occurred when Russia invaded Ukraine in early 2022 and disrupted several commodity suppliers. The subsequent declines reflect the slowing of global economic growth since then, though the declines haven’t been as severe as during past global recessions. That’s because the US economy has been growing strongly.

Source: Ed Yardeni



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