The Relationship between Economic News and Financial Markets
Types of Economic News
- Employment Reports
- Gross Domestic Product (GDP)
- Inflation Data
- Consumer Confidence and Sentiment Reports
- Interest Rate Decisions and Statements
How Economic News Affects Financial Markets
- If employment data shows strong job growth, investors may be more likely to buy stocks and other securities
- If inflation data is high, investors may move toward purchasing commodities like gold or oil
- If interest rates are raised, bond yields may increase and investors may move toward fixed-income investments