According to the EU's Copernicus Climate Change Service (C3S), 2024 is on course to rank as the hottest year on record as climate change continues to push temperatures to record highs so far this year. They are pinning it as an approximately 95% probability that this year will beat the record set in 2023 last year.
If so, that will mean temperatures recorded globally this year will be the hottest since such records began in the mid-1800s.
C3S is out with the statement after last month ended up being the hottest June month on record.
Besides the obvious from climate change, El Nino hasn't helped in relieving the world from the heat this year. The phenomenon is said to warm the surface waters of the eastern Pacific Ocean, leading to a rise in global average temperatures.
Global warming might not impact markets directly but as the above trend continues, it is worth taking notice. These sort of weather conditions do have an impact on certain commodities and in terms of demographics, it also impacts consumer behaviour to a certain extent.
It's the simple things like:
- Should I go out (possibly spending more money) or should I stay in today?
- Should I invest in an air conditioner?
- Where should I go for a cooling and breezy holiday?
- The weather is so hot, maybe I should buy an iced tea to quench the thirst.. etc