nottheaverageactuary

Actuarial news and views from Cape Town and beyond

Influences on financial markets.

1 Comment

Hi

Here is the Article link :

http://finance.zacks.com/influences-stock-market-1546.html

Influences on financial markets.

There are various factors that affect the financial markets, however some of the factors that are overlooked. These factors may affect an entire industry or market if not considered carefully.

The articles speaks about the influences on the financial markets and gives examples of how the factors affect the financial markets.

The influences considered are : Earnings of companies, news reports (good or bad), Economic data and timing of trades.

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One thought on “Influences on financial markets.

  1. Thanks for the link Itu. So what the link covered seem pretty similar to what was covered under “Factors affecting the level of equity market” But I think it’s worth pointing out a few things that are slightly different.

    The link mentions Earnings reports as one of the factors. But I think what should be mentioned in addition to this is the expectation of these reports; if many investors knew the results already (through insider trading, word of mouth, expansion and queues at stores, etc) , this would be incorporated into the price already and the reports would not play such a major role.

    Secondly, the link identifies time of the trading as another factor. and specifically refers to August and December where “many market players” take vacation. This may be true in USA, which has a large stock exchange. But this is not necessarily the case in all countries. In contexts of Asian economies like Korea, typical vacations for the working population and investors is in September and February – Christmas season is not really considered as a family holiday season.

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