As global markets continue to navigate the complexities of macroeconomic shifts, investor sentiment, and geopolitical developments, major stock indices around the world are witnessing significant drawdowns from their all-time highs (ATH). A recent snapshot of key global indices shows a varied picture—some markets are deeply in correction territory, while others remain relatively resilient.
Let’s take a closer look at where global indices stand in relation to their lifetime peaks.
The Shanghai Composite index has seen the sharpest decline, currently trading nearly 49.2% below its all-time high. Following closely is Hong Kong’s Hang Seng Index, which is down by 39.9%, reflecting prolonged economic and political uncertainties in the region. South Korea’s KOSPI is also facing pressure, having dropped 28.6% from its peak levels.
In the United States, the Nasdaq Composite—home to major tech giants—has corrected by 22.8%, while the S&P 500 is off by 17.6% and the Dow Jones Industrial Average by 15.8%. These figures highlight the broader correction phase in U.S. equities, albeit less severe compared to Asian markets.
Meanwhile, Japan’s Nikkei 225 is currently down 20.4%, despite its recent efforts to regain strength amid a recovering corporate sector. European markets like France’s CAC 40 and Germany’s DAX have declined by 16.1% and 15.7%, respectively, while the FTSE 100 from the UK has shown relatively strong resilience, down just 13.5% from its peak.
Among emerging markets, India’s Nifty 50 has also experienced a moderate correction, down by 15.6%, signaling a relatively stable investor sentiment and robust domestic growth outlook.
Impact of the Ongoing Trade War
One of the major drivers behind these widespread market corrections is the renewed trade tensions between the United States and China. As both economic superpowers impose fresh tariffs and restrictions on technology, semiconductors, and other strategic sectors, global supply chains have been significantly disrupted. This uncertainty has particularly affected Asian markets like China, Hong Kong, and South Korea, where export-driven economies are heavily reliant on global trade dynamics.
The trade war has also sparked investor fears of a prolonged economic slowdown, which has led to risk-off sentiment in equity markets. Multinational companies with global exposure are re-evaluating their production bases, while rising input costs and slowing demand further weigh on earnings projections. In short, the ongoing trade war is acting as a key headwind across both developed and emerging markets.
This varied performance across global indices underscores the impact of region-specific challenges—be it China’s economic slump, global inflationary trends, central bank policies, or escalating trade wars. While some markets have plunged deeply from their highs, others have managed to stay within a healthy range of correction.
Disclaimer:The information provided in this article is for educational and informational purposes only and should not be considered financial or investment advice. Please consult your financial advisor before making any investment decisions. The data presented is based on available information at the time of writing and may be subject to change.