Macroeconomic factors that affect stock market

Macro-economic factors such as interest rates, inflation, unemployment and economic growth often move stock markets. Stock markets are always rooting for   PDF | On Jun 1, 2013, Ita Joseph John and others published MACROECONOMIC FACTORS THAT INFLUENCE STOCK MARKET DEVELOPMENT IN NIGERIA 

This paper analyzes the relationship between the US stock market and some relevant US macroeconomic factors, such as gross domestic product, the consumer price index, the industrial production One of such is the macroeconomic factors which have an impact on the financial markets and their growth (Maio and Philip, 2013). The precise link between macroeconomic factors and a developed stock exchange market varies in a timely manner in accordance with the level at which the factor impacts the stock market. Stock prices are determined in the marketplace, where seller supply meets buyer demand. But have you ever wondered about what drives the stock market—that is, what factors affect a stock's price? Factors Affecting the Stock Market. Share prices can rise or fall depending on a number of factors. Economic climate – higher economic growth will lead to increased demand and profitability leading to a rise in share prices. Confidence; Alternative markets. E.g. if the bond market looks less attractive, investors may buy shares instead. directional long-run relationship between stock price and macroeconomic variables. The study of Kyereboah-Coleman and Agyire-Tettey (2008) showed that macroeconomic factors adversely affect the performance of stock market. It appeared from the analysis that only money supply has a significant relationship on the Turkish Stock Index.

Citation: Kabeer MA (2017) The Influence of Macroeconomic Factors on Stock Markets Performance in Top SAARC Countries and China. J Bus Fin Aff 6: 241.

5 Jun 2014 Effect of macroeconomic variables on stock market returns for four emerging economies: Brazil, Russia, India and China. International Business  14 May 2019 Specifically, the market risk factor—the overall market's influence on an individual stock price and whether the share price is more or less volatile  These variables in turn affect the investment decision in the stock exchange in an economy because of the fact that it affects stock market return. Various studies  Supply, exchange rates and inflation affect the stock market returns in Kenya. Money The changes in macroeconomic factors have a diverse effect across the   The null hypothesis which states that money supply, exchange rate, inflation rate and interest rate variables collectively do not accord any impact on equity prices  

14 May 2019 Specifically, the market risk factor—the overall market's influence on an individual stock price and whether the share price is more or less volatile 

Stock Exchange Market by using a time varying parameter model with. GARCH In order to explain the effect of macroeconomic variables on stock returns, we 

market movement than other stock market proxies. Since macroeconomic variables are highly interdependent, using all of them as explanatory variables in affecting the stock market may pose severe multicolinearity problem and it becomes difficult to delineate the separate affects of different variables on the stock market movement.

Abstract: The purpose of this research is to investigate the relationship between Karachi stock market 100 index and macroeconomic variables, i.e., inflation  28 Jan 2018 that macroeconomic variables may interfere on the stock return may be a factor that can affect the equity return of financial market companies. 7 Jul 2016 the factors affecting the working of stock to manage their portfolios. Abrupt variations and unusual movements of macroeconomic variables  21 Oct 2015 Keywords: Economy; Macroeconomic variables; Stock market; BSE check the effect of macroeconomic variables on stock prices or vice-. 28 Nov 2018 to the idea that there is a relationship between stock prices and macroeconomic variables. This study illustrates how economic factors influence  This paper identifies the macroeconomic factors that influence Italian equity linkages between equity prices and variables such as money supply, inflation. Keywords: Turkish banking sector, stock prices, micro and macro factors investigates the effect of macroeconomic factors on the stock market, and the other.

5 Jun 2014 Effect of macroeconomic variables on stock market returns for four emerging economies: Brazil, Russia, India and China. International Business 

25 Dec 2015 variables affecting stock markets (Aliyu, 2009). The effect of some macroeconomic variables could vary from one market to another and from 

Stock market returns are significantly correlated with inflation and money growth. The impact of real macroeconomic variables on aggregate equity returns has  25 Dec 2015 variables affecting stock markets (Aliyu, 2009). The effect of some macroeconomic variables could vary from one market to another and from  to traders and other interested parties is the finding that macroeconomic factors do indeed influence the stock price, as do corporate results, political situations. exchange rate and GDP seem to affect returns of all portfolios, while inflation rate, exchange rate, and among macroeconomic variables and stock prices are. 5 Feb 2018 Hence, having a good understanding of the factors that affect the volatility of the stock market leads investors to a more precise prediction of the.