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NEW YORK - GLOBAL stock markets suffered their worst month in history in October, losing a whopping US$5.79 trillion (S$8.6 trillion), Standard & Poor's reported on Monday.
S&P said the loss for the 52 main global equity markets measured in dollar terms topped the record loss of US$4.0 trillion set a month earlier.
The meltdown in global markets, amid a squeeze in credit and worries about a worldwide recession, has vapourised US$16.2 trillion in market value so far this year, the financial ratings and index firm said.
'What do you get when you add the underlying concern of the economy and the fear of a worldwide recession to a market already devastated by credit issues? You get the worst-ever month for global equity markets in modern history,' said Mr Howard Silverblatt, senior index analyst at Standard & Poor's.
'Overlooked, however, is the fact that the US market has been one of the better-performing markets over the past five months - although the losses are substantial,' added Mr Silverblatt.
'To some extent, the much higher expectations of non-US growth, as well as the expected US decoupling, have caused a much stronger market decline abroad.
As a result, the US now represents 45.9 per cent of all global equity issues, compared to 40.5 per cent at the end of May.'
According to S&P, the 52 stock markets lost on average 27.47 per cent in October.
Emerging market index losses were slightly worse at 27.54 per cent, with Hungary the hardest hit, down 43 per cent.
In the developed nations, the average stock market lost 19.9 per cent, with the US market down 18.04 per cent. The worst in the category was Luxembourg, down 43 per cent in the month. -- AFP
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