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Global wealth of $2.1 trillion lost as US-China trade war simmers

The fall in India's m-cap is much higher than bigger peers such as the UK, France, Germany and Canada

Samie Modak 

Statsguru: World economy to maintain its growth momentum, says IMF

Investor wealth to the tune of $2.1 trillion was eroded this week, amid rising trade tensions between the US and China. The world market capitalisation (m-cap), as complied by Bloomberg, fell to $77.8 trillion against $79.9 trillion a week ago.

China, the world’s second-biggest market, saw the maximum erosion in wealth at $624 billion, followed by the US, whose has declined by $367 billion this week. India, currently the ninth-biggest in terms of m-cap, has seen erosion of nearly $100 billion. The fall in India’s is much higher than bigger peers such as the UK, France, Germany and Canada. In fact, Germany overtook India’s m-cap, during this week.

Investors fear that the trade tension between the two biggest economies will make a dent in and corporate earnings. Besides the trade tiff, uncertainty around election results and economic slowdown has weighed on Indian markets’ performance, say experts.

Global wealth of $2.1 trillion lost as US-China trade war simmers

First Published: Sat, May 11 2019. 00:46 IST
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