US Dollar per 1 British Pound Graph
UK’s decision to exit the European Union in June 2016 is expected to witness adverse effects in 2017. Declines in FDI and loss of tariff free access to the EU market are expected to weigh heavily on the UK economy. These developments are expected to trigger a further currency devaluation of the sterling which would raise the price of imports and hurt consumers in the form of higher prices. This would hurt the GDP of UK as 65% of its GDP basket is comprised of consumer spending. Therefore, UK is expected to register mild growth in 2017. ASIA The process of excess credit creation and over leveraging has deeply hurt the Asian economies. In June 2016, China’s total debt was registered at 250% of GDP (Guardian) and for the same period the Indian government’s debt was registered at ~70% of GDP (Fitch Ratings). Japan, Singapore, South Korea, Malaysia, and Hong Kong are some of other Asian countries with high debt. This development has put immense pressure on these countries to service debt and it increases their country risk. Thus, reducing their attractiveness to foreign investors and attracting new capital. However, high consumer demand, increasing purchasing power, positive sentiments, and introduction of government schemes aimed to boost aggregate demand are major growth drivers form the region. Therefore, 2017 Asian outlook is moderately favorable.
US based NYSE continued to dominate its leadership in terms of market capitalization amongst stock exchanges
Top 15 Exchanges in terms of market capitalization in 2014 and 2015 Rank Exchange 2015 2014 1 NYSE 17,787 19,351 2 Nasdaq - US 7,281 6,979 3 Japan Exchange Group 4,895 4,378 4 Shanghai Stock Exchange 4,549 3,933 5 Shenzhen Stock Exchange 3,639 2,072 6 Euronext 3,306 3,319 7 Hong Kong Exchanges and Clearing 3,185 3,233 8 Deutsche Börse AG 1,716 1,739 9 TMX Group 1,592 2,094 10 SIX Swiss Exchange 1,519 1,495 11 BSE India Limited 1,516 1,558 12 National Stock Exchange of India Limited 1,485 1,521 13 Nasdaq Nordic Exchanges 1,268 1,197 14 Korea Exchange 1,231 1,213 15 Australian Securities Exchange 1,187 1,289 Source: World Federation of Exchanges Note: Market Capitalization figures provided above are denoted in USD billion
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