Global Overview for Business
The most important factors which affect economic conditions and financial markets are:
- Global economic growth expectations
- Global Inflation outlook
- Global Liquidity conditions
- Global Risk environment
- Financial Markets
Global Economy & Financial Markets Overview
Global economic growth is the most important factor affecting individual economies, sectors, industries, and all financial assets (stocks, bonds, currencies, and commodities).
Global Economic snapshot
Your can gain an instant insight of the global economy’s conditions by just analyzing 1 indicator, the MacroVar Global PMI which is a weighted average of Manufacturing PMI of the 35 largest economies.
PMI is a leading economic indicator published for each country monthly derived from surveys of private sector companies. The PMI summarizes whether market conditions are expanding, staying the same, or contracting as viewed by managers of the companies surveyed. PMI provides information about current and future business conditions.
Special attention is given to the top four largest economies (United States, Eurozone, China, Japan) comprising more than 50% of global GDP.
Interpreting Global PMI: Readings above 50 indicator economic expansion, while readings below 50 indicate economic contraction. When Global PMI is above 50 global economic growth is expanding and vice-versa. Explore an in-depth overview of the global economy.
Global liquidity is the availability of credit in global financial markets. Global liquidity is controlled by central banks using various instruments to inject or remove money from the system. An expansion of global liquidity leads to debt growth which is favorable for financial assets and economic growth and vice versa.
Global Liquidity Snapshot: Global Liquidity is gauged by monitoring the 1. Level of interest rates, 2. balance sheet and 3. Money Supply M2 of the four major central banks of the world namely Federal Reserve (US), ECB (Eurozone), PBoC (China) and BOJ (China).
Global Stocks are represented by the ACWI and the S&P 500. The stock market is an accurate indicator for predicting future growth. During expansions, stock markets are in uptrend.
Stocks simple indicator: The simplest indicator to gauge stock markets is the 250-day moving average. Historically, when the closing price of a stock index and the 250-day moving average slope is rising financial markets signal that economic growth expectations are favourable. Explore an in-depth overview of the global markets and stock markets.
Global financial risk conditions are especially important since they affect all financial assets and economic growth. Monitoring financial risk is especially important in adjusting financial and business exposure proactively to minimize financial loss.
Global & Country Risk monitor: Global and country risk monitor are derived from many financial and economic indicators (Indicators: Equities, Credit markets, Liquidity, Bonds, FX, Banks, Country). The easiest way to monitor current financial and economic risk is to monitor MacroVar risk management indicators.