Impact of economic news on fin markets

I came across this very useful light read on how various economic news -GDP, inflation, unemployment etc. impact various kinds of financial markets – equity. bond, currency etc.

Exploring how the release of new economic data affects asset prices in the stock, bond, and foreign exchange markets, the authors find that only a few announcements—the nonfarm payroll numbers, the GDP advance release, and a private sector manufacturing report—generate price responses that are economically significant and measurably persistent. Bond yields show the strongest response and stock prices the weakest. The authors’ analysis of the direction of these effects suggests that news of stronger-than-expected growth and inflation generally prompts a rise in bond yields and the exchange value of the dollar.

It also is a nice primer on the way certain financial markets should react to the economic news.

Advertisements

2 Responses to “Impact of economic news on fin markets”

  1. skipcube Says:

    I wonder if you can you provide some comments on my site that shows the same impact of news on forex and stocks.

    -Skip

  2. trade Says:

    Great, thanks! ^_^

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.


%d bloggers like this: