Macroeconomics Forces Affect Stock Prices
Interest Rate
As interest rate shoot up 🔺so does the discount rate 🔺 which resulting in declining of present value of future earning 🔻
Inflation
Unemployment
Real Growth in GDP
Industrial Production
Budget Deficit
Money Supply
Weak Dollar
Valuation of services and goods produced that carrying out within a year of a country of its GDP included rent, salaries, wages and many more
When it result to positive performance ➕, it showed that the stock market is in good condition 👍🏻
When money supply increased 🔺, demands will increase 🔺
In which the sign of economic activity increasing 🔺 and indicate rise of cash flows eventually the stock price will rise too 🔺
The increasing of unemployment rate 🔺 shows that the negative ➖ impact on stock prices which business start to fall behind 👎🏻
Stock price will decline 🔻also it is sign of negative effect to stock market ➖
Indication of output of industrial sector in economy activity such like mining, manufacturing and utilities.
The sensitivity towards interest rates and consumer demand is high
So, increasing continuous 🔺 shows the advantageous and good market
Insignificant to foreign investor as it has negative effect on the market. However, due to weak dollar produce affordable products then it has positive effect on the economy ➕
The more the economy shrink and depressed 🔺, it can cause to stronger economic environment inflation 🔺 so eventually it will produced negative impact to the stock prices ➖ 👎🏻
Higher inflation 🔺 reflect to the higher the interest rate 🔺
purchasing power will decrease 🔻, therefore it indicates negative effects on stock prices 👎🏻