
But wait!
This is actually a bad thing. Trading volume means that there are a lot of people buying and a lot of people selling. There are two big things that determine trading volume.
How big the market is, and how speculative the market is.
American markets are much larger than European markets, but not by such an extreme amount. This trading volume is really being caused by people buying and selling stocks in an attempt to turn a profit on short term fluctuations in price.
European equities by contrast are held for much longer. This means that while they haven’t seen massive appreciating like American markets, they probably won’t experience a crash as severe as ours, if (and when) the party ends.
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Music by Epidemic Sound
Stock footage by Story Blocks