The largest stock markets in the world: 1900 vs. 2023

Since 1900, the United Kingdom has accounted for almost a quarter of global market capitalization, according to visualcapitalist.com, which has compiled a country-by-country ranking of the industry covering the years 1900 and 2023.

Data for 1900 is from the DMS database, accessed via the UBS Global Investment Returns Yearbook 2024, and figures for 2023 are based on the FTSE Russell All-World Index Series Monthly Review (December 2023).

According to the cited source, the London Stock Exchange (LSE), founded in 1801, is one of the oldest exchanges in the world, but not as old as the New York Stock Exchange (NYSE), which opened in 1792 Major companies trading on the LSE in 1900 were mainly involved in railway operations, finance and natural resources.

At that time, the LSE represented 24.2% of the global market capitalization, followed by the US markets with 14.5%, Germany (12.6%), France (11.2%), Russia (5.9 %), Austria (5%), Belgium (3.4%), Australia (3.4%), South Africa (3.2%), Netherlands (2.5%), Italy (2%). Overall, European countries represented over 67% of the global market capitalization in 1900.

Looking at the data from 2023, we can see that a lot has changed since then. 123 years later, the USA is firmly positioned as the largest stock market in the world, with 60.5%, according to the analyzed figures. America's share of global market capitalization thus increased by 46 percentage points, with the US now hosting six of the seven companies with trillion-dollar market values.

During this period of time, we can see that Asian countries such as Japan, China and India have become major stock markets. China and India are expected to become the world's two largest economies by 2075, and as a result, the size of their stock markets could grow significantly. In terms of global market capitalization, Japan ranks second in 2023 (6.2%), followed by Great Britain (3.7%), China (2.8%), France (2.8%), Canada (2.5%), Switzerland (2.4%), Germany (2.1%), Australia (2%), India (2%), Taiwan (1.7%), South Korea (1.4 %).

• Goldman Sachs reduced its estimates regarding the probability of a recession in the US

Analysts at the brokerage firm Goldman Sachs revised their estimates of a possible US recession in the next 12 months to 20%, from 25% previously, after the latest statistics on initial jobless claims and sales retail, Reuters reports, according to Agerpres.

Earlier in the month, the same brokerage firm raised the odds of a US recession from 15% to 25% after the unemployment rate rose to its highest level in three years in July, sparking concerns about a possible recession.

"We have now reduced the probability from 25% to 20%, mainly as a result of the fact that the data for July and the beginning of August, published after August 2, do not show signs of recession", says Jan Hatzius, chief economist at Goldman Sachs, noting: "Continued expansion would make the US economy look more like the other G10 economies, where Sahm's rule has remained at less than 70%."

Initial jobless claims data released last Thursday showed the number of Americans who filed for jobless benefits in the previous week fell to the lowest level in a month, while other data released the same day showed that retail sales recorded, in July, the largest increase in the last 18 months.

Jan Hatzius pointed out that if the report on the unemployment rate in August looks "reasonable", Goldman Sachs will revise its estimates on the risk of a recession in the US to 15%. The economist maintains his view that the Federal Reserve will cut the key interest rate by 25 basis points at the September meeting, but did not rule out a 50 basis point cut if the unemployment rate report comes in below expectations.