Markets
Mapped: The Largest Stock Exchanges in the World
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The Largest Stock Exchanges in the World
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Today, there are roughly 80 major stock exchanges worth a combined $110.2 trillion in value.
The world’s top two exchanges, the New York Stock Exchange (NYSE) and the Nasdaq, command 42.4% of global market capitalization. Despite the rapid growth of emerging economies, the U.S. continues to lead capital markets by a wide margin—even as countries such as India see considerable growth, surpassing the UK in 2023.
This visualization shows the largest stock exchanges in the world, with data from the World Federation of Exchanges (WFE).
Top Stock Exchanges, by Market Cap
Here are the top 25 largest stock markets covering 96.6% of total stock market capitalization:
Global Rank | Stock Exchange | Country | Market Cap Aug 2023 |
---|---|---|---|
1 | NYSE | 🇺🇸 U.S. | $25.0T |
2 | Nasdaq | 🇺🇸 U.S. | $21.7T |
3 | Euronext | 🇳🇱 Netherlands | $7.2T |
4 | Shanghai Stock Exchange | 🇨🇳 China | $6.7T |
5 | Japan Exchange Group | 🇯🇵 Japan | $5.9T |
6 | Shenzhen Stock Exchange | 🇨🇳 China | $4.5T |
7 | Hong Kong Exchanges | 🇭🇰 Hong Kong | $4.2T |
8 | National Stock Exchange of India | 🇮🇳 India | $3.5T |
9 | LSE Group | 🇬🇧 UK | $3.4T |
10 | Saudi Exchange | 🇸🇦 Saudi Arabia | $3.1T |
11 | TMX Group | 🇨🇦 Canada | $2.9T |
12 | Deutsche Boerse AG | 🇩🇪 Germany | $2.1T |
13 | SIX Swiss Exchange | 🇨🇭 Switzerland | $2.1T |
14 | Nasdaq Nordic and Baltics | 🇸🇪 Sweden, Denmark, Finland and Iceland | $2.0T |
15 | Korea Exchange | 🇰🇷 South Korea | $1.9T |
16 | Tehran Stock Exchange | 🇮🇷 Iran | $1.7T |
17 | ASX Australian Securities Exchange | 🇦🇺 Australia | $1.7T |
18 | Taiwan Stock Exchange | 🇹🇼 Taiwan | $1.6T |
19 | Johannesburg Stock Exchange | 🇿🇦 South Africa | $1.2T |
20 | B3 - Brazil Stock Exchange and OTC Market | 🇧🇷 Brazil | $0.9T |
21 | Abu Dhabi Securities Exchange | 🇦🇪 Abu Dhabi | $0.8T |
22 | BME Spanish Exchanges | 🇪🇸 Spain | $0.8T |
23 | Singapore Exchange | 🇸🇬 Singapore | $0.6T |
24 | The Stock Exchange of Thailand | 🇹🇭 Thailand | $0.6T |
25 | Bolsa Mexicana de Valores | 🇲🇽 Mexico | $0.5T |
The NYSE ($25.0 trillion) and the tech-heavy Nasdaq ($21.7 trillion) are home to many of the world’s most valuable firms, from Apple to Nvidia. Since 2016, the NYSE has grown 35.1% while the Nasdaq has ballooned 189.3% in market cap.
The vast majority of companies in the S&P 500 Index, often seen as a barometer for U.S. stock market performance, are traded on these exchanges.
With $7.2 trillion in market cap, Euronext is the world’s third-largest exchange. Since Brexit, the pan-European exchange has attracted more capital and by early 2021, it outranked the London Stock Exchange. Over the last two decades, London’s stock market has fallen from 13% to 4% of the global share.
Ranking fourth is the Shanghai Stock Exchange, at $6.7 trillion in market cap. Beverage giant Kweichow Moutai, ICBC, and PetroChina are the largest companies traded on the exchange.
Like China, as India’s economy has continued to expand, so has its primary stock market. As the twelfth-largest globally, it’s worth $3.5 trillion in market cap, growing over 133% in market value since 2016.
Should You Invest Internationally?
While U.S. stock markets are unmatched in scale in the global arena, investors may look to diversify exposure across the pond.
In fact, by 2050, Goldman Sachs projects that emerging markets’ share of global stock market capitalization will surpass America. Given the strong economic growth of emerging markets, investors may find opportunities in broad market indexes that track these countries through investment vehicles like ETFs or mutual funds.
Yet while international markets may provide opportunities for diversification, they may also present risk given political, regulatory, and economic factors.
Markets
The European Stock Market: Attractive Valuations Offer Opportunities
On average, the European stock market has valuations that are nearly 50% lower than U.S. valuations. But how can you access the market?
European Stock Market: Attractive Valuations Offer Opportunities
Europe is known for some established brands, from L’Oréal to Louis Vuitton. However, the European stock market offers additional opportunities that may be lesser known.
The above infographic, sponsored by STOXX, outlines why investors may want to consider European stocks.
Attractive Valuations
Compared to most North American and Asian markets, European stocks offer lower or comparable valuations.
Index | Price-to-Earnings Ratio | Price-to-Book Ratio |
---|---|---|
EURO STOXX 50 | 14.9 | 2.2 |
STOXX Europe 600 | 14.4 | 2 |
U.S. | 25.9 | 4.7 |
Canada | 16.1 | 1.8 |
Japan | 15.4 | 1.6 |
Asia Pacific ex. China | 17.1 | 1.8 |
Data as of February 29, 2024. See graphic for full index names. Ratios based on trailing 12 month financials. The price to earnings ratio excludes companies with negative earnings.
On average, European valuations are nearly 50% lower than U.S. valuations, potentially offering an affordable entry point for investors.
Research also shows that lower price ratios have historically led to higher long-term returns.
Market Movements Not Closely Connected
Over the last decade, the European stock market had low-to-moderate correlation with North American and Asian equities.
The below chart shows correlations from February 2014 to February 2024. A value closer to zero indicates low correlation, while a value of one would indicate that two regions are moving in perfect unison.
EURO STOXX 50 | STOXX EUROPE 600 | U.S. | Canada | Japan | Asia Pacific ex. China |
|
---|---|---|---|---|---|---|
EURO STOXX 50 | 1.00 | 0.97 | 0.55 | 0.67 | 0.24 | 0.43 |
STOXX EUROPE 600 | 1.00 | 0.56 | 0.71 | 0.28 | 0.48 | |
U.S. | 1.00 | 0.73 | 0.12 | 0.25 | ||
Canada | 1.00 | 0.22 | 0.40 | |||
Japan | 1.00 | 0.88 | ||||
Asia Pacific ex. China | 1.00 |
Data is based on daily USD returns.
European equities had relatively independent market movements from North American and Asian markets. One contributing factor could be the differing sector weights in each market. For instance, technology makes up a quarter of the U.S. market, but health care and industrials dominate the broader European market.
Ultimately, European equities can enhance portfolio diversification and have the potential to mitigate risk for investors.
Tracking the Market
For investors interested in European equities, STOXX offers a variety of flagship indices:
Index | Description | Market Cap |
---|---|---|
STOXX Europe 600 | Pan-regional, broad market | €10.5T |
STOXX Developed Europe | Pan-regional, broad-market | €9.9T |
STOXX Europe 600 ESG-X | Pan-regional, broad market, sustainability focus | €9.7T |
STOXX Europe 50 | Pan-regional, blue-chip | €5.1T |
EURO STOXX 50 | Eurozone, blue-chip | €3.5T |
Data is as of February 29, 2024. Market cap is free float, which represents the shares that are readily available for public trading on stock exchanges.
The EURO STOXX 50 tracks the Eurozone’s biggest and most traded companies. It also underlies one of the world’s largest ranges of ETFs and mutual funds. As of November 2023, there were €27.3 billion in ETFs and €23.5B in mutual fund assets under management tracking the index.
“For the past 25 years, the EURO STOXX 50 has served as an accurate, reliable and tradable representation of the Eurozone equity market.”
— Axel Lomholt, General Manager at STOXX
Partnering with STOXX to Track the European Stock Market
Are you interested in European equities? STOXX can be a valuable partner:
- Comprehensive, liquid and investable ecosystem
- European heritage, global reach
- Highly sophisticated customization capabilities
- Open architecture approach to using data
- Close partnerships with clients
- Part of ISS STOXX and Deutsche Börse Group
With a full suite of indices, STOXX can help you benchmark against the European stock market.
Learn how STOXX’s European indices offer liquid and effective market access.
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