Major central banks (e.g., the US Federal Reserve) control global liquidity. Their interest rate changes instantly shift capital flows, affecting borrowing costs and currency values worldwide.
Wall Street sets the tone. A major rally or crash in US stocks typically triggers immediate reactions in Asian and European markets due to shared investor sentiment and multinational holdings.
Global supply chains link economies. Fluctuations in commodity prices (like oil) directly impact global inflation rates and corporate profit margins across all markets.
Capital is borderless. A macroeconomic shift in one major economy instantly ripples through global stock markets via liquidity, trade, and market psychology.