When central banks are buying more treasuries, what are the indicators of the market?
When central banks are buying more Treasuries, interest rates often head lower, and when rates are lower, stock prices tend to move higher. Other important market indicators include the ratio of advances to declines and the number of new price highs and lows in the market.
What are the important commodities that market participants keep track of?
Market participants also keep track of the price of important commodities such as oil. Since oil is such a vital component of economic activity around the globe, its price is worth paying special attention to.
What is the most closely watched indicator of inflation?
There are many indicators of inflation, but perhaps the most closely watched is the Consumer Price Index (CPI). The CPI measures the change in the prices of ordinary goods that most people spend money on, such as clothing and medical services.
What is the Federal Reserve's mandate?
The mandate of the Federal Reserve is to promote economic growth and price stability in the economy. Price stability is measured as the rate of change in inflation, so market participants eagerly monitor monthly inflation reports to determine the future course of the Federal Reserve's monetary policy.
Why is oil price higher?
Oil Prices. Higher oil prices can lead to higher prices for a wide variety of products because oil is an ingredient in many materials and products. It also increases the cost of transporting goods waiting to be sold, and the cost at which they will sell.
What is consumer confidence?
The Consumer Confidence Index is considered one of those "leading" indicators. The degree of confidence in their own economic wellbeing that consumers have makes them willing or unwilling to consider buying a new car or going on a vacation.
What is the most important indicator of the health of the economy?
Employment is perhaps the most important indicator of the health of the economy. On the first Friday of each month, the U.S. Bureau of Labor Statistics releases two closely watched reports. These are tracked from month to month, and it's important to know whether the numbers are going up, down, or sideways.
