Factors That Impact the Financial Market Trends

Date:

Share post:

The digital age that we live in has made the world more interconnected than ever. In financial markets there is a common saying that news and sentiments follow the sun. The sun rises in Tokyo first among all the global financial capitals. And sentiments travel from Tokyo to Beijing to Delhi to Dubai to Amsterdam to London to New York. The news and sentiment create a web of influence all around on the way.

We can delight in calling the market crazy. But pundits will say that even though sentiments can make the market look crazy sometimes there are definite factors that affect the market’s trajectory. We discuss only a few of them in this article –

    • Government and its policies: This is probably the most important factor that affects local markets. And if big economies are involved then they can impact global markets. News of an impending US recession can send even the Islamabad market into a tizzy. Any news about the Chinese Yuan can similarly impact other near and far markets. Policy changes can deeply impact market movements. When G-20 steps forward to introduce market stimulus – it positively impacts almost global markets.
    • Market Sentiments: This is not something which is entirely qualitative. Even a few years back market sentiments were thought to be inherently whimsical. It was assumed by investors that they yield very little control on market sentiments. But in today’s mature markets we have Sentiment Indicators. It shows how a group feels that the market will behave. A Sentiment Indicator quantifies how various factors like inflation, unemployment, public policies, politics etc will influence future behavior at any moment of time. Study of these indicators along with market analyses tools like fundamental and technical analyses can create negative or positive expectations. These expectations when publicized create a bias or sentiment. So these are not some random conclusions but outcome of well informed evaluation.
  • International and Domestic Issues: Very recently we saw what a threat of Syrian war did to the markets in Asia, Middle East, Europe and Americas. Oil prices swung upwards and equities downward. War, large scale corporate fraud, political unrest, acts of terrorism (specially in financial capitals), public fear for any reason, oil and energy prices, US federal interest rates, introduction or withdrawal of market stimulus, international trade, unemployment, supply and demand issues and other similar factors can affect market prices to various degrees. In times to come international issues will exert a greater impact on local markets.
1,000FansLike
1,000FollowersFollow
1,000FollowersFollow
spot_img

Related articles

Business Management Tips to Aid Your Company’s Growth

Business Management Tips to Aid Your Company's Growth Business Management Tips: Business management is a complex concept that encompasses...

Here are 5 tips to recognize a meaningful business opportunity when you see one

You've discovered a remarkable market inefficiency It is no surprise that solving a meaningful problem leads to the best...

Five Tips to Recognize a Meaningful Business Opportunity when You See One

You have discovered a notable market inefficiency It's no surprise that the best ideas are generated when there is...

Here are 8 reasons business cards still matter.

Ease Of Giving Contact Details One reason business cards still matter in use is the ease with which they...

Are businesses still using business cards?

Are businesses still using business cards? Are you worried about your small Business Card? Customers trust businesses only after...

What’s the business?

What exactly is business? What exactly is business? It's a procedure that produces, sells and distributes products and...

Here’s How to Turn Your Recycling into a Profit (Guide for Businesses and Manufactures)

In the post-pandemic era, most businesses are looking for healthy cashflows and stability. Whether you’re the manager of...

10 TOP SHOPIFY COMPETITORS FOR BUSINESSES IN 2022

Shopify has a great reputation, and it’s easy to see why. It’s beginner-friendly, affordable, and fast. Plus, it’s...

7 PART-TIME BUSINESS TIPS TO MAKE MORE MONEY

Part-time business. Side hustle. Weekend job. Second gig. We're all familiar with stories about entrepreneurs who found success outside...

Instagram for Business: Everything you Need to Know

Your business can use Instagram to market your products and services. Here are some ways to get the...

Green Business Ideas for Eco-Minded Entrepreneurs

Are you looking to create a business while also protecting the environment? These green business ideas will help...

How to find a profitable market for information products

How can you create your information products and ensure they are bestsellers? Research is the first step. Research is...
error: Content is protected !!