What are Trading and Investing News Events?
Beginners in the financial markets often ask the question: what are trading and investing news events?
Financial news events are communicated quickly through the media and trigger a series of responses from traders and investors. The responses can be thought of as a chain reaction that often looks like this:
- Event scheduled
- Analyst consensus reached
- Trader positions taken
- Actual result
- Positions taken or closed
Who announces these events and why are they so influential on market sentiment?
Governments and certain well-known financial analysis companies like IHS Markit carry out research by surveying groups of actual market participants, for example, purchasing managers in factories, or construction companies in the housing sector.
The results of these surveys are then announced and distributed via government websites. The studies cover different sectors in the economy and are called benchmarks or indicators. Think of them as a historical record to put economic performances into context.
The figures are reported by the financial media and read by traders who use the benchmarks like thermometers to gauge the health of the economy and make trading decisions.
Some examples of economic benchmarks used in the currency markets include:
- Purchasing Manager Index (PMI)
- Gross Domestic Product (GDP)
- Retail Sales
- Inflation readings
- Unemployment reports
- Housing and construction sector reports
- Balance of trade reports
- Imports and exports
- Central bank interest rate decisions
Stock market benchmarks
Stocks investors use stock market indices as benchmarks, along with listed company earnings reports.
Investors in the stock markets also keep a close eye on central bank decisions because they may affect the interest rate climate and whether investors might favour fixed-income bonds over stocks.
Where can I find trading news announcements?
Experienced Forex traders use specialised calendars to follow trading events. Admirals Forex Calendar lists the major trading news events. The event components are:
- Survey release time and date
- National currency affected
- Level of impact
- The event title and description
- Consensus forecast
- Previous result
- Actual result
We’ve come to the end of our overview of trading and investing events. To learn more about fundamental analysis, join Admirals free webinars, including live trading sessions held every morning by expert trader Markus Gabel where you can watch trading and investing in news events analysed in real time.
This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Please note that such trading analysis is not a reliable indicator for any current or future performance, as circumstances may change over time. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.