Europe Eclised The Us Stock Market

Discussion in 'Economics' started by EMRGLOBAL, Apr 2, 2007.

  1. Europe has eclipsed the US in stock market value for the first time since the first world war in another sign of the slipping of the global dominance of American capital markets.

    Europe’s 24 stockmarkets, including Russia and emerging Europe, saw their capitalisation rise to $15,720bn (€11,819bn) at the end of last week, according to Thomson Financial data. That exceeded the $15,640bn market value of the US.

    (From FT, the only paper I read)


    This is an interesting read for all those who are still trying to sling it out with Penny Spreads in US equities and Options.

    The Euro and Asia Markets have started to give the US markets a run for their money.

    What could this mean? Foriegn capaital flowing out of US makets into the others, not 100% out flow, but enough.
  2. itotrader

    itotrader Guest

    that article took a lot of contries that dont even are part of the eurozone,like russia.

    The primary cause of Europe passing the US is the rise in share prices there since 2003 and a strong euro.

    However, the figures used to calculate the comparison include Russia and other and Eastern Europe. Not really markets at all.

    Probably just an attempt to make the US look bad.
  3. Commodities pushed it up.

    There has been a natural gas, oil, steel, iron ore, coke, uranium, copper, coal, nickel, zinc, silver, palladium, aluminum, etc. boom.
  4. Does Europe control more commodities globally than the US? You piqued my interest.

    Another possible reason that I have heard is that European companies have a greater exposure to emerging markets than American companies. Can anybody else collaborate this?
  5. Just another biased article, with funny numbers, slanted to make the US look weak.

    Sorta like the 51% of americans live under the poverty line nonsense written by people with agendas.

    Even if it were true, isnt it funny that you have to combine all of europe together to beat the US?

    How about a 1 on 1 country comparison??? :D
  6. Nevertheless, the point is valid. Even if you were to do a 1v1 comparison, that country's stockmarket capitalization relative to the US would have rose dramatically over the past several years.

    Understanding why this took place is useful information.

    Do European companies have greater exposure to commodities and emerging markets? Can anyone comment on that?