In 2022, global stock markets may experience "tightening" shocks
In 2021, with the gradual recovery of the world economy from the impact of the new crown epidemic, the global stock market has shown an overall upward performance supported by loose monetary policies and fiscal stimulus measures.
Looking ahead to 2022, the central bank's monetary policy changes in major economies such as the Federal Reserve, and the uncertainty caused by the repeated epidemics, have become the two prominent risks facing the market. Analysts believe that the recovery of the world economy is not yet stable. Once the monetary environment is tightened excessively, global stock markets may experience shocks caused by policy "tightening".
Global stock markets are generally up
Thanks to factors such as the recovery of the world economy, the improvement of corporate profits, and ample liquidity, most of the world's major stock markets will rise in 2021.
The U.S. stock market showed a trend of volatility in 2021. The SP 500, Dow Jones Industrial Average and Nasdaq Composite Index rose 26.89 percent , 18.73 percent and 21.39 percent respectively.
In Europe, the Frankfurt Stock Market DAX Index rose 15.7 percent last year and hit a record high in mid-November; the London Stock Market "Financial Times" average price index of 100 stocks performed steadily, rising 14.3 percent throughout the year.
Compared with European and American stock markets, the Japanese stock market rose more moderately, and the Tokyo stock market's Nikkei stock index rose 4.9 percent last year.
In anticipation of the Fed's tightening of monetary policy, some emerging economies are facing capital outflow pressure, and stock market performance has been dragged down. Brazil's Sao Paulo Bovespa Index fell 11.93 percent throughout the year, ending the six consecutive years of upward momentum since 2015.
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