June 30 (Cointime) - Financial markets have experienced a surge in the first half of 2023, with world stocks increasing by $6 trillion or 12%, partly due to a tech stock boom inspired by AI. The rise in interest rates has been a significant factor, but there is a sense that the cycle is coming to an end.
Japan's Nikkei share average has performed exceptionally well, rising by 16% in dollar terms, while gold has increased by 5% and benchmark government bonds have risen by 3%-6%.
Despite the positive trends, there are concerns that the tech stock boom may be a bubble, and the high valuations may not be sustainable. There have been fluctuations in the interest rate, which rose to 5% in February but dropped to 3.5% after the collapse of Silicon Valley Bank. Currently, the rate is at 4.8%, and Europe's rates are increasing again.
Bitcoin has rebounded with an 80% increase, but regulatory crackdowns have exposed its vulnerability. Commodities have been subdued, with hopes of lower global inflation due to drops in natural gas prices, oil, wheat, and corn. However, there are concerns that the aggressive rate hike cycle may lead to a recession and be seen as a policy mistake in the future.
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