Tuesday, September 20, 2016

The meaning of economic news In Fundamental analysis


Averagee Hourly Earnings
Is the growth rate between the average rate/hour in one month and the growth rate of wages, so that it can also be used as an indicator of inflation. The rate per year is also important for the record to provide an overview of the long-term trend.

Business Inventories
The inventory figures have been produced but not yet sold.
It is one component in the calculation of GDP and can provide important clues about the direction of the economy in the future.

CBI Survey
The largest employers organisation in the United Kingdom, focusing on creating maintain ideal conditions for competition and prosperity that is optimal for all. CBI survey published each month and four months against the judgment on the service sector and manufacturing past, present, and future. The resulting index showed the views of respondents to a variety of things like output, sales, pricing, investment, and export/import requests.

Chicago PMI (Purchasing Managers ' Index)
PMI data from the Chicago and surrounding areas. The scope of the survey include both industries sector, as well as the non-industrial sector. PMI is itself a composite index of five major indicators, which include the following elements: Order, Inventory Levels, production, shipping, and labor.
The number of the index above 50 means the sector of the business expansion, below 50 means experiencing contractions. This index are rated as important indicators and are considered the best indicator in measuring the activity of production. The index is also able to detect the pressure of inflation and industrial activity.

Consumer Confidence
This data measures the level of consumer optimism towards the performance of the economy. In General, Consumer Confidence will be high if the unemployment rate is low and high GDP. The data changes this month are considered not significant impact on overall trends.

The Consumer Price Index (CPI)
I.e. data that measures the average change in prices paid by consumers for a group of specific goods and services. CPI is an indicator of inflation is the most commonly used and considered also as an indicator of the effectiveness of Government policy. The rising CPI indicates rising inflation rate which will lead to a fall in the price of bonds and rising interest rates. Unlike other inflation indicators, which only covers the local production of goods, the CPI also includes imported goods. His weakness is on the small number of samples taken. Analysts typically focus more on Core (Core) CPI, a variant of the CPI does not cover the components of the change in price is most unstable. Core CPI is assessed more accurately measures the rate of inflation.

Durable Goods Orders
Is the data to calculate the volume of the order and delivery of the goods that belong to the category of durable (stuff that benefits the age 3 years or more).

The FOMC Minutes
Is the announcement from the Federal Reserve that explains about the meeting held the deciding American monetary policy institutions this before.

Gross Domestic Product (GDP)
Measuring the value of market goods and services produced a country, regardless of the nationality of companies that produce goods or services. GDP consists of 4 main components namely, levels of consumption, investment, Government purchases, and the total net exports. Per quarter, figures released this data shows the percentage growth from the previous quarter. The GDP report is divided into 3 release:
1. advanced – first release.
2. preliminary – the first revision.
3. final – the second and final revision. Revisions which usually affects significant for the market.

Help-wanted Index.
Is the index that calculates the number of job vacancies advertised in 51 newspapers scattered across the United States. The Chairman of the Federal Reserve, Alan Greenspan, often talk about and observe this index, because the index is able to give the condition of the employment market in the US at this time.

H I C P
More or less the same as the Consumer Prices Index (CPI). Is an indicator of inflation used by the European Central Bank (European Central bank).

IFO Survey
Survey about the condition of Germany's main business. Published monthly by the Institute for Economic Research, is one of the largest research institutions in Germany, the IFO index is generally considered an important indicator of the economy's activity, and is renowned for its reliability within indicate a change of trend in the growth rate of
economy of Germany. The respondents of this survey covers more than 7,000 companies.

Leading Indicators
Is a combination of several economic indicators. This index is arranged to get a signal about the trend of the economy that are more up to date (current) and consistent.

M4 – Money Supply
Is the data to calculate the amount of money in circulation in an economy. That is, the amount of money spread out in the shape of coin or of paper,
The number of loans in the bank, to obtain from individuals, corporations and other banks.

The amount of money borrowed by the Government.
Experts and world monetary experts believe that Money Supply is a good indicator to predict the rate of inflation. However, the korelasinya become unreliable since the financial liberalization in the ' 70s.

Net Capital Flows
Is the data to calculate difference between clean of total funds/capital in and out.

New York Empire State Manufacturing Index
The monthly survey of the businessman, who was held in New York and the surrounding area by the Federal Reserve of New York. Participants in this survey represent a wide range of industry sectors.

Non Farm Payrolls (NFP)
It is one of the most eagerly awaited news by most fundamental traders. Where is the Non Farm Payroll (issued by the US) appears on once a month on Friday the first week. Non Farm Payrolls to measure the magnitude of an expenditure of the Government in the payment of salaries that are outside the field of agriculture as compared from the previous month. Increasing the Non Farm Payrolls could lead to currency strengthened drastically in a matter of a few tens to hundreds of points. So NFP can be classified an indicator with high volatility is expected.

Personal Consumption Expenditures (PCE)
More or less the same as the CPI, PCE is reporting (more accurately part of Personal Income report) released by the Department of Commerce's Bureau of Economic Analysis. PCE measures the rate of change in the price of goods and services. The data component is composed of household spending-spending cash or credit for any type of
the good stuff is durable, long lasting, and not the service.

The Purchasing Managers ' Index (PMI)
PMI is a composite index of five major indicators, which include the following elements: Order, Inventory Levels, production, shipping, and labor. The number of the index above 50 means the industry expansion, below 50 means experiencing contractions. This index are rated as important indicators and are considered the best indicator in measuring the level of production volume. This index is also able to detect the pressure of inflation and activity in the field of industry.
Productivity
Measure the change in the number of goods or services produced. Combining inputs of labour and capital. The price unit of the labour component is a useful indicator to measure the pressure on wages. The importance of productivity has been growing the past few years since the Federal Reserve has begun to pay attention to the development trend and the rate of inflation.

Producer Price Index (PPI)
Is a set of indices which calculate the rate changes to the selling price of goods and services in a specific time period received by domestic producers. In short, the PPI measures the rate of price change from the perspective of the seller.
Not as good as CPI inflation pressures indicated in. But since entering the component items which are in the process of production, the PPI often can simultaneously estimate the CPI.

PSNCR – Public Sector Net Cash Requirement
Is the amount of money to be borrowed by the Government to finance its expenditure-expenditure. Because the Government often took out more than they receive from tax revenues, and the only way to add the drawback was that of borrowing.
Real GDP
Experts tend to pay more attention to macroeconomic Real GDP data because it also takes into account the inflation rate, not as (Nominal) GDP that simply reflects the level of changes in prices.

Retail Sales
This data to calculate the total receipts of retail stores, without entering the service sector spending for components in it. This monthly data shows the percentage change from the previous month's data. A negative number shows the number of sales decreased daripenjualan the previous month.

Tertiary Index
Is the data to calculate the level of demand for the service sector.

TICS/Foreign Purchases of US Securities
Is the data that count the number of incoming capital flows from foreign investors.

ICS/Foreign Purchases of US Securities
Is the data that count the number of incoming capital flows from foreign investors.

Trade Balance
The trade balance is the difference between the net value of exports and imports of goods and services a country. A positive number indicates a surplus of exports exceeding imports, the deficit exceeded imports showed negative export.

Unemployment Rate
Is the percentage of those who are actively seeking jobs but has yet to get a job. Even though it is a very commonly known data, the Unemployment Rate is relatively less important to the market because it is considered less accurate (often late in providing signals of change trend of the economy).


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