World equity markets lose $5.2 trillion in January

Emerging markets fell 12.44%, while developed markets lost 7.83%, one of the worst ever starts to a new year, S&P reports.

February 8 2008: 4:32 PM EST

NEW YORK (CNNMoney.com) -- World equity markets lost $5.2 trillion in the month of January, taking back previous market gains and leaving developed markets in the red for the trailing three months, said Standard & Poor's

Emerging markets fell 12.44% in January, while developed markets lost 7.83%, according to S&P, making it one of the worst-ever starts to a new year.

"Even though the U.S. is not the only locomotive on this train, we are the largest one, and if we're having difficulty, it's a world difficulty," said Howard Silverblatt, Senior Index Analyst at Standard & Poor's.

"Whether we are in a recession or not, we're acting like we are," Silverblatt added. "When the U.S. consumer starts pulling back, it's going to affect everyone."

But world governments are doing what they can to control the situation. "Central banks have been quick to intervene with cash in fusions as well as rate reductions and we're entering more difficult times," said Silverblatt. "

While Moroccan markets gained 10.17% and Jordan's rose 3.11%, worldwide emerging equity markets posted an average loss of 12.44% in January, S&P reported.

Turkey saw some of the worst market losses, down 22.70% for the month, followed by China, which was down 21.40%; Russia, down 16.12% and India, down 16%, S&P said.