Financial markets are going through a volatile period of trading with investors digesting the unpalatable implications of rising inflation and the measures central banks will take to bring it under control.
In a first quarter marked by financial market volatility, exacerbated by high inflation, rising interest rates and escalation of the Russian military conflict in Ukraine, the three months to the end of March saw the FTSE Mondo Visione Exchanges Index down by 2.3%. Brazil's B3 was the best performing exchange in the quarter, with Aquis Exchange the worst.
Global Exchanges Have Torrid February As War And Inflation Take Toll - FTSE Mondo Visione Index Down 3.5%
Global markets endured a torrid February as investors already pressured by uncertainty about the conflict in Ukraine struggled to guess how a toxic combination of persistently high inflation and stagnating growth would impact interconnected economies.
Further to the ‘Russia - Ukraine Related Sanctions - March 2022 Index Review’ announcement issued on 25 February 2022, FTSE Russell held a meeting with the FTSE Russell Policy Advisory Board and Equity Country Classification Advisory Committee to discuss the escalation of sanctions by the European Union (EU), United Kingdom (UK) and the United States of America (USA) on Russia following its invasion of Ukraine.
As investors digested updates from major central banks about the outlook for inflation and interest rates, the major markets suffered substantial corrections. In addition, geopolitical risks have also significantly influenced the market in the face of possible conflict in Ukraine. As a result, over 60% of the 34 constituents of the index ended the month in negative territory.
Global Exchange Groups advanced in December to conclude a year dominated by uncertainty, volatility and the impact of the second year of the global coronavirus pandemic.
The Saudi Tadawul Group, the owner and operator of the kingdom's bourse, was added to the FTSE Mondo Visione Exchanges Index effective market open on 20 December 2021 following the trading of shares in Saudi Tadawul Group on the Saudi Exchange on 8 December 2021.
November was a brutal month for global exchange groups. Of the 33 constituents of the index, only six ended the month even or in positive territory.
The FTSE Mondo Visione Index gained 5.9% in October, with the index closing the month at 78,107.02 points, up from the September close of 73,767.87, setting a new closing all-time high of 78,934.8 on 19 October 2021.
The Nigerian Exchange Group Plc (NGX Group) was added to the FTSE Mondo Visione Exchanges Index effective market open on 22 October 2021 following the commencement of trading of shares in NGX Group on the Main Board of Nigerian Exchange Limited.