Market cap rose, alongside trading volume and value, group reports.

Globally, securities trading activity was up notably in the first half of 2024, according to data from the World Federation of Exchanges (WFE).

In a paper released, the industry trade group for exchanges and central clearing counterparties reported that the volume of trading in listed securities rose 9.6% in the first half (compared with the previous six months). The value traded was up 11.7%, “as markets were highly liquid globally despite the backdrop of economic and geopolitical uncertainties.”

“The volatility we have seen in markets in recent weeks shows this uncertainty has carried over to the second half of the year,” the WFE said.

Exchange-traded derivatives volumes were also up 11.6% in the first half, compared with the previous six months. This “continued the growth trend over the last few years,” the WFE said, with activity in equity and interest rate derivatives up handily, outpacing declines in currency and commodity derivatives trading volumes.

Global equity market capitalization was also up 5% in the first half to US$116.2 trillion. The increase was “driven largely by the Americas,” while last year’s rapid growth in Asia slowed, the WFE noted.

Despite the increased market cap, global initial public offerings (IPOs) were down by 24.2% in the first half, while the total number of listed companies was down 0.3% globally, the paper said.

Looking ahead, Dr. Pedro Gurrola-Perez, head of research with the WFE, said, “For the second half of the year a decline in inflationary pressures and an ease in monetary policy may support the positive trends we observed in the first half of 2024.”

But, at the same time, he said “persistent geopolitical tensions, a potential slowdown in the U.S. economy coupled with the uncertainty derived from the U.S. election, could inhibit market growth.”