What is the relationship between the global economy and global markets?

The global economy and global markets are closely intertwined, as the performance of one can greatly impact the other. Global markets, which include stock markets, bond markets, currency markets, and commodity markets, reflect the state of the global economy, including factors such as economic growth, inflation, and geopolitical developments. On the other hand, the global economy is affected by the performance of global markets, as it influences factors such as the cost of capital, trade flows, and corporate profits. For example, a downturn in global markets can signal a decrease in investor confidence and a decrease in economic activity, while a strong performance in global markets can signal increased investor confidence and an increase in economic activity.