Global Factors Affecting the European Market Movement
Actually, the key forces affecting the way of market development are common for different regions. The European Union includes 17 members, with the most influential of them being Germany, France, and Spain. All these countries develop their economies under the influence of five major forces. Let us discuss them in more detail.
Core Factors of Market Changes
- Prices and Inflation
- These two forces affect all the currencies, both digital and fiat. The basic measure of inflation in the EU is the CPI. It estimates the average value of the standard consumer bundle. Normally, traders follow the Core CPI – the basic Consumer Price Index minus energy and nourishment costs.
- In order to predict the business environment in the EU, specialists advise to check confidence and sentiment statements. The ZEW Financial Market Survey – one of these reports – is prepared every month by German specialists. The document reflects the viewpoints of 350 financial experts, who make findings of the mid-range perspective in the local pipeline development.
- Fiscal Policy
- The financial policies affect all sorts of currencies, changing the strategy of their growth. Euro, for instance, develops under the influence of the European Central Bank, which is considered the most influential financial institution in Europe.
- Level of Economic Upswing
- The healthier the Union’s economy, the better for each of its members. As a rule, the economic health is estimated by the GDP, which is equal to the overall amount of products and services offered in the EU. The growth in GDP signalizes that the pipeline is powerful and competitive.
- Balance of Payments
- The balances of payments, especially the commercial balance and the running account, are also of the outmost importance for the Eurozone marketplace. All these reports reflect the way the countries within the limits of the EU interact with each other in regard to all sorts of payments.
You can consider hundreds of economic factors influencing the way European market develops and grows. Some of them are more important, while others are considered to be secondary. If you want to better understand the changes on the Global Market, as well as the EU pipeline, try to study all of them paying special attention to the five forces we’ve described before. It’s by all means the best way to study the causes of international capital flows.