The Banking Executive Magazine - January 2023 Issue

INTRODUCTION Global markets are welcoming the new year 2023 with greater re- silience, more economic uncertain- ties, big challenges, and more adaptable investors and global sup- ply chains. This article depicts the outlook of global markets in 2023 in face of upcoming challenges and continued trends carried from last year 2022.The article starts with a brief overview of global markets, in- dices, and asset classes, and predicts the future trends, outlook and oppor- tunities in global markets in 2023. The article concludes with predic- tions for future assets classes in light of more resilient global markets in 2023. OVERVIEW OF GLOBAL MARKETS A global market is an exchange for goods or services that crosses na- tional boundaries to encompass the entire world. Global markets also refer to the total of all of the market activity that takes place in the world. It may also refer to the market in a specific commodity product (like oil) or currency. Global markets are af- fected by a complex combination of international economic forces and the combined and interacting results of regulation in all of the nations that comprise the marketplace. The modern global market is charac- terized by the very rapid flow of cap- ital from sector to sector and nation to nation in the pursuit of profit. Stock and bond markets strongly in- fluence one another. In some cases, this amplifies the economic impact of events, as government bonds or regional stock markets can be sub- ject to quite intense pressure from global investors during times of per- ceived crisis. This phenomenon can place tremendous pressure on na- tional currencies and debts. Historically, the market in commodi- ties was one of those most pro- foundly impacted by globalization. Economic developments in any na- tion now tend to have an impact on commodity prices throughout the global economy. The oil sector is an ideal example of a global commodity market. Both the demand and the supply of oil are highly inelastic. This lack of flexibility in the marketplace means that a relatively small de- crease in production or increase in demand anywhere in the world can produce a great shift in the value of Global Markets Outlook 2023 GLOBAL MARKETS OUTLOOK 2023 TOWARDS MORE RESILIENCE BY DR SOHA MAAD the BANKING EXECUTIVE 32 ISSUE 169 JANUARY 2023