What Moves the Market? Understanding Global & Domestic Triggers
Financial markets never move in a vacuum. Prices of equities, bonds, commodities, and currencies react to a constant stream of information—some originating thousands of miles away, some right here at home. Understanding these global and domestic triggers helps you anticipate market swings, refine your timing, and build resilience into your portfolio. 1. Global Triggers 1.1 Central Bank Policies Federal Reserve (Fed) Rate Decisions The U.S. Fed’s interest-rate moves and its forward guidance dominate global sentiment. A surprise rate hike or hawkish tone can trigger a sell-off in emerging markets—including India—by making dollar-denominated assets more attractive. ECB, BOJ & Others Quantitative easing or tightening in Europe, Japan, and elsewhere also ripples through global liquidity and capital flows. 1.2 U.S. & Global Economic Data Non-Farm Payrolls (NFP) , ISM Manufacturing , ISM Services Strong U.S. employment or PMI prints suggest global growth moment...
