The 8 largest Stock Exchanges around the world

Stock Exchanges around the world can influence one another as they react according to the global economic scenario, not just with local events. Therefore, even those who have the objective of investing in the Brazilian Stock Exchange, keeping their investments concentrated only in the national economy, it is important to maintain an analytical look internationally.

Therefore, knowing the overseas markets and staying always informed is paramount to have successful investments. Often external events trigger predictable reactions in a country, both the fall and the high of the Stock Exchange. Understanding these mechanisms can help the investor protect himself when needed, and also identify the best time to make big profits.

So, we've listed the top 8 Stock Exchanges around the world so you can keep an eye on them:

Placed first on this list is the New York Stock Exchange. The NYSE was established in 1792 and is located on Wall Street, the famous financial center. In 2006 it joined Euronext and is currently managed by NYSE Euronext. This merger resulted in the first pan-Atlantic capital market, which currently holds an aggregate value of US$ 13.9 trillion.

The National Association of Securities Dealers Automated Quotations (NASDAQ) is the stock market with the second highest value-added in the world, US$ 4.3 trillion. Like NYSE, which ranks first, NASDAQ is also located in New York City. Most of its listed companies are small and mid cap, accounting for more than 2,800 shares available, primarily in technology-related sectors.

The Tokyo Stock Exchange, known as the TSE, is located in Japan. In value-added terms, it is the third largest in the world, totaling US$ 3.3 trillion with its more than 2,400 listed companies. Its dynamics with the other world exchanges is very interesting, since, due to the timezone, it is the first one to open, being able to initiate reactions of global scope.

The London Stock Exchange is the UK's leading Stock Exchange and one of the oldest in the world. Located in London, the LSE was founded in the year 1801 and until 1914 was considered the largest on the planet. Despite the formal start date, stock trading activities in London began in the 17th century. Bonds were traded in a coffee shop where broker John Castaing published the product price list. Today, the LSE already reaches an aggregate value of US$ 3 trillion.

The Paris Stock Exchange is, in fact, a group that brings together the stock exchanges of Paris, Amsterdam, Brussels and Lisbon. Its aggregate value goes around US$ 2.9 trillion, being a market of extreme importance for the European economic conjuncture.

The Hong Kong Stock Exchange, HKEx, is the second largest capital market in Asia and the sixth largest in the world, holding an aggregate value of US$ 2.8 trillion. Its business listing also includes, in addition to Chinese organizations, some foreign companies. The first formal stock market listing is dated in 1891 and in 1941 was given the name of Hong Kong Stock Exchange.

The close trade relationship between Brazil and China is an interesting scenario to keep in mind when it comes to the Shanghai stock exchange. Some Brazilian companies, from the mining sector, for example, are likely to suffer strong influence from the Chinese market. Its aggregate value has already reached US$ 2.6 trillion.

The Toronto Stock Exchange, TSX, is Canada's largest stock market, with an aggregate value of US$ 2 trillion. TSX offers national assets and also stocks of companies from abroad. There is a very significant negotiation in the mining, oil and gas sectors.

Now that we have seen the eight largest exchanges in the world, it is possible that the question arises: what about Brazil? What position is it in? The Brazilian stock market is highly respected internationally, yet has not reached enough aggregate value to occupy the top positions in this world ranking.

The criterion used is the sum of the market value of all companies listed on the stock exchange in question. BM&F Bovespa currently occupies the 13th position, since its aggregate value totals US$ 726 billion.

The good news is that the prospects for ascension are high. The Brazilian economy is one of the largest in South America, exporting important products such as soy and coffee beans. Even with all the current instability, tied to the political crisis, the country still remains an excellent investment alternative. This also attracts many investors from outside the country.

The Bovespa has been showing impressive strength every year. Proof of this is the increase in financial volume, which grew almost three times in ten years, exceeding R$ 930 trillion in the first half of 2016. In addition, the number of people registered in the Brazilian stock market grew more than six times in 14 years.