Hi! Thanks for the question.
I will try to provide you with links and some snippets from the
articles that directly answer your questions but I highly recommend
that you read the articles in their entirety. The document “Financial
Markets” from the Federal Reserve Board is in PDF file so you will
need the Adobe Acrobat Reader to read it. In case you haven’t
installed it yet here is a link so you could download The Adobe
Acrobat Reader (http://www.adobe.com/products/acrobat/readstep2.html).
The Federal Reserve Board enumerates the following main economic
indicators it follows closely which affects the financial markets and
the economy.
Real Gross Domestic Product (GDP)
Consumer Price Index (CPI)
Nonfarm Payroll Employment
Housing Starts
Industrial Production/Capacity Utilization
Retail Sales
Business Sales and Inventories
Advance Durable Goods Shipments, New Orders and Unfilled Orders
Lightweight Vehicle Sales
Yield on 10-year Treasury Bond
S&P 500 Stock Index
M2
The web page wherein this list comes from also has an explanation of
its characteristics.
“Economic Indicators”
http://www.ny.frb.org/pihome/educator/bythe.html?expand=4
In the book, “What Drives Financial Markets”, Brian Kettell notes of
other indicators not mentioned above which affects financial markets.
Gross National Product
GDP Deflator
Producer Price Index (PPI)
Commodity prices—general
Commodity prices—crude oil
Commodity prices—food
Average hourly earnings
Employment Cost Index (ECI)
Index of Leading Indicators (LEI)
Vendor deliveries index
“What Drives Financial Markets” (Summary)
http://vig.pearsoned.com/store/product/1,3498,store-562_isbn-0273630709_type-ALL_editmode-1,00.html
An explanation of the additional economic indicators and their impact
to financial markets could be found from the next website. Some new
terms are also added.
“Economic indicators”
http://www.ac-markets.com/EN/analysis_tools.eco_indicators.asp
In order to make things clear, the Federal Reserve Board provides a
definition of financial markets and how they function.
“The financial markets encompass a vast array of techniques and
instruments for borrowing and lending that facilitate investment,
consumption, saving, and the convenient timing of purchases and sales
of goods and services. The borrowers are mostly businesses,
individuals, and govern-mental units with a variety of needs for
funding. Lenders are businesses and individuals with savings or excess
cash to invest."
“Active financial markets help potential borrowers and lenders find
the most advantageous terms and interest rates."
“Market participants often distinguish financial instruments with
maturities of a year or less from those with longer initial
maturities. The market in which instruments with shorter maturities
are issued and traded is referred to as the money market.”
“A distinction is also made between primary and secondary markets. The
term “primary market” applies to the original issuance of a credit
market instrument. There are a variety of techniques for such sales,
including auctions, posting of rates, direct placement, and active
customer contacts by a salesperson specializing in the instrument.
Once a debt instrument has been issued, the purchaser may be able to
resell it before maturity in a “secondary market.” Again, a number of
techniques are available for bringing together potential buyers and
sellers of existing debt instruments. They include various types of
formal exchanges, informal telephone dealer markets, and electronic
trading through bids and offers on computer screens.”
“Financial Markets”
http://www.ny.frb.org/pihome/addpub/monpol/chapter4.pdf
Search terms used:
US "economic indicators" affecting "financial markets"
I hope these links would help you in your research. Before rating this
answer, please ask for a clarification if you have a question or if
you would need further information.
Thanks for visiting us.
Regards,
Easterangel-ga |
