Global debt, equity markets lose $1 trillion in value as hawkish Fed spooks traders

# 09:57
19 December 2016

Global bonds lost over $430 billion in market value this week (Yellen hawkishness and China bond carnage) but stocks lost even more ($525 billion) as China financial turmoil added to the world's woes (and "three rate hikes next year" and fiscal stimulus efficacy questions did not help).


Having retraced back to pre-Trump levels before The Fed statement this week, the combination of China turmoil and Janet's un-dovishness sent global stocks and bonds down over $1 trillion on the week - the worst week globally since May 2016 (when the dollar surged amid China weakness and slowing EU growth forecasts)


In fact, while US bank stockholders are ebullient at The Trump presidency-to-be, the rest of the world has lost a combined $1.5 trillion in market value across its bonds and stocks (thanks in major part to Janet's help this week).