Global stock and bond markets lost more than $30 trillion in 2022, according to The Financial Times.

The MSCI stock index has lost a fifth of its value this year, the biggest drop since 2008.; stocks from Wall Street to Shanghai and Frankfurt also fell significantly.

In New York, a sell-off on the last trading day of the year exacerbated losses for the blue-chip S\u0026P 500 and high-tech Nasdaq, which are down 19% and 33% respectively this year, the worst annual performance for both since 2008..

Yields on 10-year U.S. government bonds, the global benchmark for long-term borrowing costs, jumped to 3.9% from about 1.5% at the end of last year - the biggest annual increase since the 1960s, according to Bloomberg reports..

“We had this situation for years where stocks and bonds were expensive because it was the same game, driven by low inflation and low interest rates.. The lesson of this year is that at some point there is a day of reckoning and it is cruel,” said Luca Paolini, chief strategist at Pictet Asset Management..

According to Bloomberg, the market value of companies traded on all the world's stock exchanges has fallen by $25 trillion, while the Multiverse Index, a data provider that tracks global public and corporate debt, has fallen by almost 16% or $9.6 trillion..

Rising borrowing costs have also wiped out trillions of dollars in the value of US tech giants..

Tesla has lost almost two-thirds of its value this year, while chip maker Nvidia has lost 50%. Shares of Apple and Microsoft fell nearly 30%, while Alphabet, Google's parent company, lost nearly 40% and Facebook owner Meta fell 64%.

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According to the Financial Times, the value of the cryptocurrency market has fallen by $1.7 trillion since the start of 2022, indicating that the speculative fervor that gripped the market in 2020 has exploded this year..

Sprawling Chinese stock markets have also been hit as the economy has been crippled by strict coronavirus measures.. The Shanghai and Shenzhen CSI 300 share index fell 22% in local currency and 28% in dollar terms.

The MSCI Europe Index is down about 16% in USD terms, but down 11% in EUR.

S\u0026P GSCI up 9% as energy and agricultural prices show strong gains.

London's FTSE 100 index, which focuses heavily on energy, mining and pharmaceuticals companies that have better handled the market change this year, is up slightly YtD in sterling.

The intensity of market swings this year highlights the scale of the regime change faced by global investors accustomed to low interest rates..

As the FT explains, higher interest rates reduce the appeal of owning assets like stocks and riskier debt because investors can earn higher returns in cash or ultra-safe assets like US, German or Japanese government bonds.. Because higher rates make borrowing more expensive, they also tend to put pressure on the economy as a whole, tightening financial conditions for companies and businesses..

Meanwhile, the European Central Bank warned that in 2023 the EU is expected to fall in GDP, significantly rise in inflation and weaken the euro..