The Impact Of News On Financial Markets

This site is built for the purpose of capturing current event news for economics. Although the FOMC interest decision is a news event and can fall under the category of through fundamental analysis I am a technician and I believe that charts always price everything in. However I guarantee the market does not know what exactly the Feds comments and decision will be, therefore it is not priced in yet and this will cause the markets to react when they do find out.Economic News

The Dow Jones industrial average (DJI:^DJI – News) was up 2.04 points, or 0.02 percent, at 10,574.06. The Standard & Poor’s 500 Index (^SPX – News) was down 0.99 points, or 0.09 percent, at 1,135.53. The Nasdaq Composite Index (Nasdaq:^IXIC – News) was down 1.95 points, or 0.08 percent, at 2,306.76.Economic NewsEconomic News

I would like to introduce the above suggestion as soon as possible as I believe it would be beneficial for the economy as more workers would save more, and also invest allot more, and more importantly the increase of investment in companies would be away of increasing the Aggregate Demand and helping companies raising money without having to lend as much to produce more and meat demands.

So sometimes a budget deficit would be a good sign, as it may be increasing quality of education and health care services; which also causes potential economic growth, and producing more jobs for the labour force making the country more competitive with more efficient workers and potentially lowers inflation as well.

Government Spending comes from two main sources, tax revenue and lending, as the revenue earned from tax, the government use to fund the NHS, education services etc, which are good sources to put revenue into to cause actual and potential economic growth, tax revenue sometimes may not be enough amount of money; this is when the government would start lending money from central banks etc and this would be a budget deficit as government spending is greater than tax revenue.