According to Bloomberg data, beyond the US and India, Taiwan and Saudi Arabia are among the other major markets that have witnessed a decline in market valuation.
However, Germany and France have defied the broader market downturn, emerging as standout performers. A rally in France-listed stocks propelled the country ahead of the UK and Canada in market capitalisation, while Germany climbed two spots, surpassing Taiwan and Saudi Arabia.
Robert Subbaraman, Head of Global Macro Research at Nomura, observes that tariffs under Trump have already risen significantly. The effective US tariff rate has climbed to around 10%, up from 2.4% before Trump took office. While India looks relatively insulated from global risks, the growth in the US could slow down, whereas the Europe could see some improvement, Subbaraman said in an exclusive interaction with CNBC-TV18.
“We are likely witnessing a once-in-a-generation shift in the global order,” said Robert Subbaraman, Head of Global Macro Research at Nomura. “Europe stands out as particularly interesting, with massive fiscal expansion on the horizon. We estimate around €250 billion per year in spending, equivalent to approximately 1.5% of GDP. This could lead to stronger growth, stickier inflation, and possibly higher interest rates than previously expected for Europe.”
However, on Friday, March 7, both the CAC 40 and DAX declined, falling 1% and 1.8%, respectively. Despite this, Germany, the world’s ninth-largest market, has seen a 21% surge in stocks since the start of the year, while France has gained 15%, securing the sixth spot in global market capitalisation, just behind India. In comparison, the Nifty50 has dropped 6% in dollar terms during the same period.
With a market capitalisation of $61 trillion, the US dominates the global equity market, accounting for nearly half of the world’s market value. China and Japan follow, contributing 8.4% and 5.3%, respectively. India ranks fifth, just behind Hong Kong, with a market share of slightly over 3%.