|. The ratio cant be used to directly compare the valuation levels of different nations. Chart. And the rampant speculation didnt end with the stock market. Individuals are a very small relative portion of all forex volume, and mainly use the market to speculate and day trade. It ranks the most valuable public companies. The development of an economy's financial markets is closely related to its overall development. Corporations will engage in FX trading to facilitate necessary business transactions, to hedge against market risk, and, to a lesser extent, to facilitate longer-term investment needs. Foreign exchange trading occurs around the clock and throughout all global markets. "Distribution of Countries with Largest Stock Markets Worldwide as of January 2022, by Share of Total World Equity Market Value. 0.72%. The average "trend line" value of the ratio is shown below. As surprising as it may seem, in early 1989, Japanese stocks represented 45% of the volume of global stock markets, while 33% corresponded to the US and 9% to the United Kingdom. The total market capitalization of the cryptocurrency market tripled during the year, and coins that launched as jokesthink Dogecoin or Shiba Inuwere major market players. The Forbes Advisor editorial team is independent and objective. Market Status indicates if a market is open or closed right now.The Market Status API allows you to add market status or countdowns to your own website or application. You can only download this statistic as a Premium user. In 2017, the figures are totally different, as the North Americans dominate the market with 53% of the market capitalization, with just 8.4% for Japan and 6.2% for the United Kingdom. You need a Statista Account for unlimited access. Dr. Ed Yardeni has pointed out some possible shortcomings of using the ratio to estimate the current market valuations. ", Credit Suisse, Distribution of countries with largest stock markets worldwide as of January 2022, by share of total world equity market value Statista, https://www.statista.com/statistics/710680/global-stock-markets-by-country/ (last visited March 04, 2023), Distribution of countries with largest stock markets worldwide as of January 2022, by share of total world equity market value [Graph], Credit Suisse, February 23, 2022. S&P Global market cap as of April 16, 2021 is $90.35B The New York Stock Exchange is the largest stock exchange in the world, with an equity market capitalization almost 24.5 trillion U.S. dollars in January 2021. The market cap to GDP ratio would be approximately 1.66 (25 trillion/15 trillion). Europe Includes Market Capitalization on 102 economies standardised by CEIC. Payable monthly by credit card. Instant access to full history data in excel. The nations diversity and openness are what truly allow businesses from all countries and industries to find their place in the market and thrive. We use this information in order to improve and customize your browsing experience and for analytics and metrics about our visitors both on this website and other media. All Rights Reserved. The United States of America is the top country by market capitalization in the world. The Covid market is really going to characterize this year, in some ways more so than 2020it really drove the market direction and narrative.. Market capitalization refers to the total dollar market value of a company's outstanding shares. Potential decoupling of mainland China and its regions from the US - Over . Our revolutionary technology changes the way individuals and organizations discover, visualize, model, and present their data and the world's data to facilitate better decisions and better outcomes. Foreign-exchange markets are where currencies are converted so that funds can be moved from one country to another. Please create an employee account to be able to mark statistics as favorites. This website stores cookies on your computer. However, this also means that exchanges in emerging markets may not have enough financial activity to sustain them, putting pressure on them to rethink their operations. The country's total market cap stands at $3.21 trillion, which is higher than that of the UK ($3.19 trillion), Saudi Arabia ($3.18 trillion), and Canada ($3.18 trillion). At the same time, free trade agreements with 20 other countries provide enhanced access to hundreds of millions of additional consumers and the United States continues to work with companies to increase opportunities for U.S. exporters. This is the list of the world's biggest companies by market capitalization. The table below lists the total market cap to GNI (GDP) ratios of the largest economies in the world.Comparing the current market cap-to-GNI ratio (also known as the Buffett Indicator) of a country to its historical average can be used to estimate the current valuation and expected returns of a nation's stock market.The current cap-to-GNI of the United States is 156.66% (Jan 1st, 2023). The Briefing. A single cookie will be used in your browser to remember your preference not to be tracked. 2023 Forbes Media LLC. Dynamics have also swung in favor of workers over their employers, which has emboldened millions of workers to quit their jobs at unprecedented rates or demand higher wages. Middle East Securities can be shares of stock, bonds issued by a company or sovereign, and different financial instruments in a public venue. The over-the-counter bond market is up on average 5.7% in the last seven . The GNI has largely replaced the use of GNP since the World Bank begin calculating and publishing GNI figures instead of GNP numbers. [Online]. Business and economic data for 200 countries, * indicates monthly or quarterly data series. We use this information in order to improve and customize your browsing experience and for analytics and metrics about our visitors both on this website and other media. 3 5 Foreign Exchange Market and Instruments. The U.S. has added 18.5 million nonfarm jobs since April 2020 and the number of people filing for unemployment claims recently reached a 52-year low. Especially technological advances have often been expected to lift corporate profits to a entirely new level but the evidence for this has remained mixed. Not even the still-raging global Covid-19 pandemic, or its Delta and Omicron variants. First of all, foreign exchange transactions have a panoramic existence and the most flexible transactions, thereby providing high liquidity. Register in seconds and access exclusive features. Its been a tale of two consumers, says Bassuk. | Please, be advised that the latest release presents changes in the methodology to compute some of the indicators, which have been properly identified in the tab definition and sources. It is a capitalization-weighted composite index. Malaysia Market Capitalization accounted for 389.904 USD bn in Jan 2023, compared with a percentage of 372.858 USD bn in the previous month. Mar/03. This website stores cookies on your computer. The indicators we use are still the percentages of the total market caps of these countries over their own GDPs and the modified indicator, TMC / (GDP + Total Assets of Central Bank) ratio. Another implication is that the market will be dominated by the big banks, because only the giants have the global activity to allow competitive quotes on a large number of currencies. The Dow Jones Industrial . Please try again later. A Managing Director of Jefferies Financial Group, which before the bankruptcy held a 49.9% equity stake in the operating company, was appointed chairman of the FXCM Group board. His work has appeared in CNBC + Acornss Grow, MarketWatch and The Financial Diet. A single cookie will be used in your browser to remember your preference not to be tracked. The US market dominates the Global Top 100 and continues to increase in its relative size - The market capitalisation of US companies in the Global Top 100 has grown at a CAGR of 18% and 15% in the last five and ten years respectively and up 19% in the year to March 2022. Explore the most complete set of 6.6 million time series covering more than 200 economies, 20 industries and 18 macroeconomic sectors. Investopedia requires writers to use primary sources to support their work. Negative correlation means that a lower-than-average ratio is correlated with higher-than-average returns. Commissions do not affect our editors' opinions or evaluations. The advancement of the internet has altered this picture and now it is possible for less-experienced investors to buy and sell currencies through the foreign exchange platforms. Before joining Forbes Advisor, John was a senior writer at Acorns and editor at market research group Corporate Insight. Available via annual subscription to one or more of CEICs global and premium databases. For example, if the Japanese yen has a low yield, market participants would sell it and purchase a higher yield currency. Consolidated Fiscal Balance: % of GDP (%), Forecast: Government Expenditure (USD bn), Federal Govt Receipts: Excise Taxes (USD bn), Federal Government Financing: Borrowing from the Public (USD bn), Federal Debt: Public Debt Securities (PDS) (USD bn), Gross Federal Debt: Annual: Percentage of GDP (%), Exports: Medicinal and Pharmaceutical Product (USD th), Imports: Medicinal and Pharmaceutical Product (USD th), Exports: FAS: Goods: Foods, Feeds and Beverages (USD mn), Exports: FAS: Goods: Consumer Goods (USD mn), Exports: FAS: Goods: Industrial Supplies (USD mn), Imports: Customs: Goods: Automotive Vehicles, Parts etc (USD mn), Exports: FAS: Goods: Capital Goods (USD mn), Imports: Customs: Goods: Capital Goods (USD mn), Exports: FAS: Goods: Automotive Vehicles, Parts etc (USD mn), Imports: Customs: Goods: Foods, Feeds and Beverages (USD mn), Imports: Customs: Goods: Consumer Goods (USD mn), Imports: Customs: Goods: Industrial Supplies (USD mn), Exports: FAS: sa: Goods: Food and Beverages (USD mn), Imports: Customs: sa: Goods: Industrial Supplies (USD mn), Imports: Customs: sa: Goods: Consumer Goods (USD mn), Exports: FAS: sa: Goods: Industrial Supplies (USD mn), Imports: Customs: sa: Goods: Capital Goods (USD mn), Exports: FAS: sa: Goods: Consumer Goods (USD mn), Imports: Customs: sa: Goods: Food and Beverages (USD mn), Exports: FAS: sa: Goods: Automotive Vehicles and Parts (USD mn), Imports: Customs: sa: Goods: Automotive Vehicles and Parts (USD mn), Exports: FAS: sa: Goods: Capital Goods (USD mn), Exports: FAS: United Kingdom: sa (USD mn), Imports: Customs: United Kingdom: sa (USD mn), Foreign Portfolio Investment: % of GDP (%), Foreign Portfolio Investment: Equity Securities (USD mn), Foreign Portfolio Investment: Debt Securities (USD mn), Forecast: Current Account Balance (USD bn), Net International Investment Position (USD mn), BOP: Current Acct: Balance: Primary Income (USD mn), BoP: FA: Liabilities: Portfolio Investment (PI) (USD mn), BoP: FA: Liabilities: Other Investment (OI) (USD mn), BoP: FA: Net Incurrence of Liabilities (USD mn), BOP: Financial Account: Acquisition of Financial Assets: Net (USD mn), BOP: Current Acct: Balance: GS: Services (USD mn), BoP: FA: Assets: Portfolio Investment (PI) (USD mn), BOP: Current Acct: Balance: GS: Goods (USD mn), BoP: FA: Assets: Other Investment (OI) (USD mn), BOP: sa: Current Acct: Balance: GS: Goods (USD mn), BOP: sa: Current Acct: Balance: Primary Income (USD mn), BOP: sa: Current Acct: Balance: GS: Services (USD mn), BoP: sa: FA: Liabilities: Direct Investment (DI) (USD mn), BOP: sa: Financial Account: Acquisition of Financial Assets: Net (USD mn), BOP: sa: Capital Account: Balance (USD mn), BOP: sa: Financial Acct: Assets: Direct Investment (USD mn), Net International Investment Position (IIP): US Assets (USD bn), Net International Investment Position (IIP): US Liabilities (USD bn), Foreign Direct Investment: Asia and Pacific: Japan (USD mn), Foreign Direct Investment: Canada (USD mn), Foreign Direct Investment: Europe: France (USD mn), Foreign Direct Investment: Europe: United Kingdom (USD mn), Foreign Direct Investment: Europe: Netherlands (USD mn), Direct Investment Abroad: Finance & Insurance (USD mn), Direct Investment Abroad: Information (USD mn), Direct Investment Abroad: Wholesale Trade (USD mn), Direct Investment Abroad: Mining (USD mn), Direct Investment Abroad: WH: Bermuda (USD mn), Direct Investment Abroad: Europe: Netherlands (USD mn), Direct Investment Abroad: Europe: Luxembourg (USD mn), Direct Investment Abroad: Europe: Ireland (USD mn), Direct Investment Abroad: Europe: United Kingdom (USD mn), Foreign Exchange Reserves: Months of Import (NA), Debt Service Ratio: Private Non-Financial Sector (%), Credit to Private Non-Financial Sector (USD bn), Reserve Assets: Holdings of Convertible Foreign Currencies (USD bn), Categorical Economic Policy Uncertainty Index (Index), Report On Business: Purchasing Managers' Index (NA), United States Labour Force Participation Rate: sa (%), United States Employment: Non Agriculture (Person th), United States Exports: FAS: Goods: Consumer Goods (USD mn), United States Unemployment: Female (Person th), United States Mfg Ind: Inventories: Consumer Goods (USD mn), United States (FDI) Foreign Direct Investment: Information (USD mn), United States Mfg Ind: sa: Inventories: Consumer Goods (USD mn), United States Exports: FAS: Goods (USD mn), United States Gross Federal Debt: Annual: Percentage of GDP (%), United States Export Price Index: All Exports excl Food & Fuels (Dec2010=100), United States Import Price Index: All Imports excl Food & Fuels (Dec2010=100), United States BOP: sa: Current Acct: Balance: GS: Goods (USD mn), United States Net International Investment Position (IIP): US Assets (USD bn), United States BOP: Capital Account: Balance (USD mn), United States BOP: sa: Financial Account: Acquisition of Financial Assets: Net (USD mn), United States BOP: sa: Current Acct: Balance: GS: Services (USD mn), United States BOP: sa: Current Acct: Balance: Primary Income (USD mn), United States BOP: Financial Account: Acquisition of Financial Assets: Net (USD mn), United States BOP: sa: Financial Acct: Assets: Direct Investment (USD mn), United States BOP: sa: Capital Account: Balance (USD mn), United States BOP: Current Acct: Balance: GS: Goods (USD mn), United States BOP: Current Acct: Balance: Primary Income (USD mn), United States BOP: Current Acct: Balance: GS: Services (USD mn), United States BOP: Current Account: Balance (USD mn), United States Net International Investment Position (IIP): US Liabilities (USD bn), United States Index: Standard & Poors: 500 (1941-1943=10), United States Producer Price Index (1982=100), United States Economic Optimism Index (NA), United States Avg Weekly Earnings: sa: Manufacturing (USD), United States Avg Weekly Earnings: sa: Private (USD), United States CES: Average Annual Expenditure (USD), United States Avg Weekly Earnings: sa: Goods Producing (USD), United States Avg Weekly Earnings: sa: Private Service Providing (USD), United States Avg Weekly Hours: sa: Private (Hour), United States Avg Weekly Hours: sa: Mfg (Hour), United States Unemployment Insurance: Jobless Claims: Initial: sa (Person th), United States Inventories to Shipments Ratio: sa: Manufacturing (Unit), United States Avg Weekly Earnings: Goods Producing (USD), United States Motor Vehicle Registration: Private and Commercial (Unit mn), United States Population Estimates Program: Population: Resident (Person th), United States Federal Government Receipts (USD bn), United States Mfg Ind: Shipment: Capital Goods (USD mn), United States CPI U: All Items Less Food & Energy (1982-1984=100), United States Mfg Ind: Shipment: Consumer Goods (USD mn), United States Prime Lending Rate: Month Average (% pa), United States Avg Weekly Earnings: Private Service Providing (USD), United States Avg Weekly Earnings: Private (USD), United States Motor Vehicle Registration: Total (Unit mn), United States Consumer Price Index (CPI): Urban: Transport (1982-1984=100), United States Consumer Price Index (CPI): Urban: Recreation (Dec1997=100), United States Federal Government Outlays (USD bn), United States Consumer Price Index (CPI): Urban: Medical Care (1982-1984=100), United States Consumer Price Index (CPI): Urban: Education & Communication (EC) (Dec1997=100), United States Consumer Price Index (CPI): Urban: Apparel (1982-1984=100), United States Federal Government Financing: Borrowing from the Public (USD bn), United States Consumer Price Index (CPI): Urban: Food & Beverages (FB) (1982-1984=100), United States Avg Weekly Earnings: Manufacturing (USD), United States Federal Govt Receipts: Excise Taxes (USD bn), United States Consumer Price Index (CPI): Urban: Housing (1982-1984=100), United States CPI U: sa: All Items Less Food & Energy (1982-1984=100), United States Labour Force: Male (Person th), United States Labour Force: Female (Person th), United States Cellular Telephone: Number of Subscribers (Unit mn), United States PPI: Final Demand (FD) (Nov2009=100), United States PPI: sa: Final Demand (FD) (Nov2009=100), United States PPI: Final: Services: Trade: FG: Personal Consumption (Nov2009=100), United States PPI: sa: Final: Goods: EFE: FG: CG: Nondurable (1982=100), United States PPI: sa: Final: Goods: EFE: FG: PC: Nonmanufacturing (1982=100), United States PPI: Final: Goods: EFE: For Export (Nov2009=100), United States PPI: Final: Goods: EFE: FG: PC: Nonmanufacturing (1982=100), United States PPI: sa: Final: Services: ETW: FS: Finished Consumer Services (Nov2009=100), United States PPI: sa: Final: Services: Trade: FG: Personal Consumption (Nov2009=100), United States PPI: sa: Final: Goods: EFE: For Export (Nov2009=100), United States PPI: Final: Goods: EFE: FG: CG: Nondurable (1982=100), United States PPI: Final: Services: ETW: FS: Finished Consumer Services (Nov2009=100), United States Electricity Generation (kWh/Day bn), United States Electricity Consumption (kWh/Day bn), United States Gross National Product: sa (USD bn), United States Gross Domestic Purchases: sa (USD bn), United States GDP: sa: Final Sales to Domestic Market (USD bn), United States GDP: sa: Final Sales to Domestic Purchasers (USD bn), United States GDP: sa: Income Receipts from the rest of the world (USD bn), United States GDP: sa: Income Payments to the rest of the world (USD bn), United States Gross National Product: 2000p: sa (USD bn), United States Gross Domestic Purchases: 2000p: sa (USD bn), United States Gross Domestic Product (GDP): 2000p: sa (USD bn), United States GDP: 2000p: sa: Personal Consumption Expenditures (USD bn), United States GDP: 2000p: sa: PCE: Durable Goods (DG) (USD bn), United States GDP: 2000p: sa: PCE: DG: Motor Vehicle & Parts (USD bn), United States GDP: 2000p: sa: PCE: DG: Furniture & Household Equipment (USD bn), United States GDP: 2000p: sa: PCE: DG: Other (USD bn), United States GDP: 2000p: sa: PCE: Non Durable Goods (NDG) (USD bn), United States GDP: 2000p: sa: PCE: NDG: Food (USD bn), United States GDP: 2000p: sa: PCE: NDG: Clothing & Shoes (USD bn), United States GDP: 2000p: sa: PCE: NDG: Gasoline, Fuel Oil & Other Energy Goods (USD bn), United States GDP: 2000p: sa: PCE: NDG: Other (USD bn), United States GDP: 2000p: sa: PCE: Services (USD bn), Disability Income and Long-term Care Insurance, Foreign Purchases and Sales in Long Term Securities: African Countries, Foreign Purchases and Sales in Long Term Securities: Caribbean Countries, Foreign Purchases and Sales in Long Term Securities: Latin American Countries, Foreign Residents' Portfolio Holdings of U.S. Securities, Health Insurance: Accident and Health: Net Incurred Claims by Lines of Business, Health Insurance: Direct Written Premium by Lines of Business, Health Insurance: Operations by Lines of Business, Life, Accident & Health and Fraternal Entities, NASDAQ: Turnover and Market Capitalization, Property & Casualty Insurance: Industry Financial Snapshots, Property & Casualty Insurance: Reinsurance, Standard & Poors: Global and European Indexes, Title Insurance: Industry Financial Snapshots, Foreign Purchases and Sales in Long Term Securities, Foreign Purchases and Sales in Long Term Securities: Asian Countries, Foreign Purchases and Sales in Long Term Securities: European Countries, Foreign Purchases and Sales in Long Term Securities: Other Countries, Health Insurance: Accident and Health: Net Earned Premium by Lines of Business, Health Insurance: Accident and Health: Number of Covered Lives by Lines of Business, Health Insurance: Industry Financial Snapshots, Life, Accident & Health: Premium by Line of Business, Life Insurance: Life Insurer Assets Distribution, Major Foreign Holders of US Treasury Securities, Property & Casualty Insurance: Combined Ratio by Lines of Business, Property & Casualty Insurance: Premium Pricing: Quarter on Quarter Rate Changes, U.S.