No matter how you trade. Whether your trade traditional stocks and bonds or derivatives like CFD’s and binary options, chances are that you’re ready to make the big bucks as there is plenty of news coming down the line. However, with so many big stories out there, it can be easy to get lost in the convolution. Nonetheless, there are three big stories that will likely shape market movement in the coming months. Today, we’ll talk about what those stories are and why they are so important.
United States Presidential Election
First and foremost, the United States presidential election is a big story at the moment, and likely will be for weeks to come. After all, Americans will be voting to choose the President that will lead the largest economy in the world. The interesting thing is that both candidates are highly unfavorable, which could lead to market turmoil regardless of who wins.
At the moment, the ballots are being counted, and trump seems to be winning. This is very interesting because throughout the election, when Trump has led in the polls, the market has done poorly. So, keep a close eye on who wins, and how the media parses the story. This ultimately can play a big role in market movement.
With the media putting the presidential campaign in the spotlight, it seems as though investors have all but forgotten the fact that the Federal Reserve is mulling over an interest rate increase. In fact, when they increased their rate late last year, the Fed said it would be increasing rates between 2 and 4 times this year. Obviously, that plan hasn’t worked. Nonetheless, there’s still time for a rate hike before the year is over.
In fact, many argue that we’re going to see an increase in December. With economic conditions seemingly improving in the United States, there’s a strong argument for this case. Nonetheless, the Fed has been very silent as usual, and the idea of a hike is up in the air. Nonetheless, it’s going to be important to watch this story as interest rate changes often lead to movement in currency rates, commodities, and indices.
Finally, there’s another story that seems to have been swept under the rug in the light of United States presidential elections. That story is the Brexit. Just a few months ago, the consumers of the UK voted for the region to discontinue its agreement with the EU.
At this point, Theresa May said that the UK will invoke article 51 (the article that starts the negotiations) no later than March of 2017. In response, Francios Hollande and Chancellor Merkel lashed out with harsh words and calls for even harsher negotiations.
At the end of the day, the divorce of two of the world’s largest economies can have massive, global economic implications. As a result, we could see movement in the stock market, commodities market, and even currency market following any news released. So, as the election comes to a close, watch closely for updates with regard to the Brexit.
While the United States presidential election may be coming to a close, you won’t need to dig for news that may move the market. At the moment, news on the macro-economic level will likely shape what we see over the next few months. So, keep your eyes peeled for the fundamental changes that will lead to incredible opportunities in the market!
Cover Image via Express.co.uk