In this article we will be seeing certain market drivers and how they affect greatly affect market prices.
Interest rates
1. Interest rates
You can be sure that this is one of the factors that fundamentalist look out for when they need to make analysis of market situations. When you borrow money from banks, and other places, you will certainly be expecting interest on such money. So if a country increases its interest rate, the strength of that currency increases. Also many foreign investors look out for this increase.
Rising of gold prices
2. Gold prices
Another factor that drive market prices is the rising of gold prices. Gold is a commodity that is seen as an alternative to the U.S. dollars, and that has made their relationship with price interdependent. For instance, if the prices of gold increase beyond a particular level, then it should be expected to break more levels in periods to come.
Relating these figures of gold are what many fundamentalist are involve it, and practically it is fun for them.
Oil prices, 1994-2008
3. Oil prices
Also, the translation of oil prices have made a significant impact in the analysis of fundamentalists. They relate this products, and they can figure out where the next market movement will be. For some companies such as airlines, the rise in oil prices means a down turn of profits for them, so equity traders can relate these products with themselves and arive at a conclusion of market movement.
Monday, May 05, 2008
