The Asian Stock Market Might ‘Dethrone’ London

Economy Nilgun Salim
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The British capital started to lose its dominant position in the Global Stock Market, while Asia is gaining more and more ground.

According to the most recent BIS chart, in comparison to the charts from three years ago, London’s total market value dropped from 41% to 37,1%.

New York’s market value reported a 19% rise, while Tokyo, Hong Kong, and Singapore reported a 6% rise only in the last few months.

The Chinese Yuan officially became the most transacted currency in the world, doubling its global market share and surpassing the Mexican Peso.

The trading industry was once one of the most successful fields for banks but now it almost seems ‘anemic’. The average volume of the transactions initiated daily in the entire world dropped for the first time since 2001. If in April 2013, the Global Stock Market reported $550 billion dollars gains, this year barely surpassed  $500 billion dollars.

The pressure in London is at its highest because important currencies such as Euro, Yuan, and the Australian Dollar are dominated by British banks. Earlier this year, almost all UK banks registered disappointing numbers regarding these currencies, while the ones from Asia literally exploded.

Obviously, the ‘golden era’ in the trading industry became just a beautiful memory.

“The settlements might represent a reason for the significant dropping and I don’t mean the FX settlements.”, told Deutsche Bank analyst George Saravelos.

Trade-reliant economies, like China, often resort to weakening their currencies in a bid to make their exports cheaper and prop up the economy.