Global stock markets still below 2007/8 peaks

stocks Mar10.pngBy coincidence, the blog’s 6-monthly review of global stock markets takes place in March/September, so its review last March took place just as the market rally began. This week is therefore a good time to review developments since then.

Russia has been the the best performer (up 160%) and India up 100%. Brazil, another BRIC country, is in 3rd place (up 85%). But China, the fourth BRIC, is last, with a rise of ‘just’ 40%, behind Japan (up 45%). The US, Germany and UK are up c60%.

The blog maintains its view that this is a typical bear market rally, however, with a further decline to come. And the chart above provides some evidence for its belief. Even after these rallies, all the major markets are still down versus their 2007/8 peak. The best performer remains Brazil, down just 6%.

China and Japan are the worst performers, down 50% and 43% respectively since their peak. Russia is still 39% down, in spite of its recent rally. Then come Germany and the US, down 27%, with India and the UK in 2nd place, down c18%.

About Paul Hodges

Paul Hodges is Chairman of International eChem, trusted commercial advisers to the global chemical industry. He also serves as a Global Expert for the World Economic Forum. The aim of this blog is to share ideas about the influences that may shape the chemical industry and the global economy over the next 12 – 18 months. It looks behind today’s headlines, to understand what may happen next in critical areas such as oil prices, China and Emerging Markets, currencies, autos, housing, economic growth and the environment. Please do join me and share your thoughts. Between us, we will hopefully develop useful insights into the key factors that will drive the industry's future performance.


Leave a Reply