Global Stock Markets Remain Unscathed by Banking Sector Mistrust

The wave of mistrust in the banking sector that swept the world has not been able to significantly damage the investment microclimate in the global stock markets. Banks’ own share prices have fallen recently, but the same cannot be said for stock market indices as a whole.

Index Aug

If we talk about the main financial artery of the world, Wall Street, then they Index of 500 largest companies in the period from the end of last year to March 31 of this year, it managed to rise by a solid 7%. It is true that it is immediately worth mentioning that the direction of share prices in the US stock market is not uniform and differs significantly within different sectors. Therefore, the amount of growth in the indices represented by different sectors is very different. So, for example, the stock market index of large capitalization companies Dow Jones Industrial Averege managed to increase by only 0.3% in the three months of the year. Meanwhile, the index NASDAQ Composite, which includes a large number of technology sector companies, experienced an increase of as much as 16.8% in the mentioned three-month period. This could be considered a very good indicator of growth not for a period of three months, but even for a whole year, at a time when the economic situation allows us to hope for rapid economic growth and improvement of financial indicators of companies. Currently, however, it is heard from time to time that certain indicators of the so-called economic sentiment or mood are very good, and this can promise better financial indicators of companies, thus contributing to the rise in share prices.