Exchanges profited from higher than usual trading volumes in the first quarter caused partly by the Russia-Ukraine conflict and rapidly rising interest rate expectations. Volumes have, however, now fallen across all asset classes to a more historically normalised level. The declining volumes are weighing on exchange stocks, and the three months to the end of June saw the FTSE Mondo Visione Exchanges Index down by 13.9%.
Performance remained muted in May after a steep decline of 8.6% in April as concerns about the global economic outlook and prospects of higher inflation continued to weigh on the markets.
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.
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.
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.