The geopolitical situation in this part of the world is not without consequences for the financial markets. The Middle East, crucial in terms of oil extraction volumes, has seen the price of black gold rise in response to these tensions. The global economy’s dependence on energy and the potential implications of these conflicts on oil supplies are a reminder of how geopolitical events can have a major impact on the economy.
Stock Exchanges:
A stock exchange is a marketplace where buyers and sellers come together to trade financial securities (stocks, bonds, options,ETF,…). While stock exchanges now operate electronically, they once took place in physical locations, with stock prices being shouted out loud. Several major stock exchanges exist worldwide. Foremost is the New York Stock Exchange, boasting a capitalization of over $25 trillion, making it the world’s largest. Following that are Asian stock exchanges: Tokyo, Shanghai, and Hong Kong, each with a capitalization nearing $5 trillion. Europe houses some of the oldest exchanges, including London, Paris, and Frankfurt. Emerging from the introduction of the euro, the Euronext group began with the merger of Amsterdam, Brussels, and Paris exchanges. It later incorporated other European exchanges such as Dublin and Lisbon. With a capitalization of $4 trillion, Euronext is a significant stock market entity, home to renowned indices like the French CAC40. Euronext serves as a central hub for the European financial markets, facilitating the flow of capital, supporting economic growth, and ensuring the proper functioning of the capital markets ecosystem in the region.