There are many factors that influence the market in which the major ones are economic, financial and political factors. Mainly, the news is a factor that can change a market situation in a moment. The stock prices usually go up if the news is positive and go down if the news is negative. Now the question pop in the head that which news should a trader follow?
Economic releases and economic news
Economic release or economic news are the first point of interest. Various economic reports and statistics like:
- gross domestic product,
- unemployment,
- inflation,
- interest rates,
- retail sales,
- and other data.
Financial news
Financial reports represent the financial news that largely affects stock prices. A company’s share price usually goes up if financial figures are better than the forecast and share decrease in value if a company’s financial figures are worse than the forecast.
Political news
A country’s health is affected by political events:
- elections,
- revolutions,
- impeachments,
- death of political leaders,
- and other events that may cause political instability.
So it’s important to follow political news.
Unforeseen events
Natural disasters like earthquakes, tsunami drought or an unexpected events such as terrorist attacks influence the market too.
Remember that the reaction of a market after a news release usually lasts from 30 minutes up to two hours but there are times when it can last for 3-4 days.
In order not to miss any important releases you can follow our feed that accumulates news from multiple sources.
Trade economic news on the IQ Option Platform
Most important economic news and releases
Economic releases are publications of various economic reports and statistics like gross domestic product, unemployment, inflation or interest rates, retail sales, industrial production index, trade balance and other surveys.
For example.
Example of news impact
US Federal Reserve raised its key interest rates by 25 basis points from 1.75 percent to 2 percent. On the 13th of June and as a result the dollar strengthened against the emerging market currencies and hit a three week high against the Japanese Yen following the Fed announcement.
By buying the US dollar and selling the Japanese yen (USDJPY) a trader can generate a profit.
In the same section you can follow the economic news and economic releases by using the forex calendar. Also, you can read about other types of important news you can use in trading.
Trading political news on the IQ Option platform
Political events
Politics affect a country’s economy and as a consequence has a major impact on its currency. Political events that can affect the economy are:
- elections,
- revolutions,
- impeachments,
- death of political leaders etc.
Brexit referendum as a political news
Consider an example of a Brexit referendum on June 23, 2016, that took place in the UK, as a result, the British vote impacted both Britain’s economy and the British pound. The dollar has reached its 31 year low overnight after the vote when the British vote impacted both Britain’s economy and the British pound.
Unexpected events
There are other unexpected events not necessarily political ones but available that may influence the market and these events may include terrorist attacks or natural disasters like earthquakes tsunamis or droughts.
Do not forget that a market reaction to unexpected breaking news is usually stronger than to scheduled data releases.
Trading financial news on the IQ Option Platform
What is financial news?
Important factor that can influence the market situation is the financial news. Various financial reports of publicly traded companies are required to be published. That contain important financial data such as:
- revenue,
- net income,
- earnings per share,
- cash flows etc.
And company’s stock price get affected by this information so it is very important to follow quarterly and annual reports in order to successfully trade stocks
Financial report on Q2 2018 and its influence on stock price
Consider an example of Google’s parent Alphabet published quarter 2 results. The share of Alphabet rose by five point three percent-after the company’s financial result beat market expectations which result in the share at an all-time high of $1275.
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