Market news

The news that moves markets in 2024?

By Paul Reid

31 January 2024

3138 news that moves markets

In this article, we will cover Exness opinions alongside reporting from Barron’s, which is a commercial partner of Exness.

News can move the markets, but can smaller events make big ripples? While a drone attack in Jordan may seem far removed from the world of stocks and bonds, such political acts can cause the speculators to, well, speculate. And they tend to look at the most extreme scenarios first.

For us, it’s like adding pieces to a puzzle where the picture’s constantly changing. But do we even need to see the big picture? Or is every breaking news report a breadcrumb revealing a general direction for traders?

An explosion denotes conflict; conflict can escalate quickly, and escalation leads to trade and supply disruptions — suddenly, consumer sentiment shifts to uncertainty and fear. 

That’s not some theory without data to support the hypothesis. That is our unpredictable world and lives unfolding daily. Cause and effect real-world influences that can start small and ripple outwards.

So what’s a trader to do?

If you’re lucky enough to have a job that will let you listen to financial news, try having it running in the background. Yes, all day, every day. You don’t need to be glued to it. Just have Bloomberg TV or whichever channel you prefer running nonstop.

When breaking news has consequences, the media dedicates a few extra minutes to the story and revisits it often. Immediately ask yourself which market might be affected by that on-screen news event. Does the item generally have a negative or positive spin?

Conflict affects supply and demand. And whichever conflict news channels deem important will start pulling on market prices sooner or later.

At this point, head over to the Exness demo account and open the chart of an asset likely to be affected. Open a risk-free virtual trade based on the news report. Then, it’s time to sit back, relax — with the news channel in the background — and see what happens next.

Are you wondering what kind of event you’re supposed to be looking out for? It doesn’t have to be a huge story. You’ll know when you see it, lingering on every channel and its headlines. Shortly after, a panel might gather to discuss the story, or guest speakers of influence might drop in to bolster the importance of what must be said. It happens all the time.

A lot’s happening right now, and just like a butterfly’s beating wings in one corner of the world can supposedly set off a tornado in another, there is a cumulative effect of those newsworthy events on the markets. Check out Barron’s article below for an example. Since news of that drone attack first went around the globe, the price of USOIL has jumped 5.82% to $77.40 (USD).


Jordan Drone Attack Impacts Oil Price. Iran’s Involvement Is the Worry.

BY BRIAN SWINT | UPDATED JAN 29, 2024 06:54 AM EST

Oil prices were swinging between gains and losses early Monday after surging over the weekend amid an attack on a base in Jordan that killed three U.S. servicemen.

It’s the first time U.S. troops have been killed in this latest Middle East conflict. The U.S. said the drone strike came from an Iran-backed militia and that it would retaliate.

Since the start of the present hostilities on Oct. 7 when Hamas attacked Israel, the concern from an investment perspective is that the war could widen and jeopardize oil supplies in the region, home to some of the world’s largest producers.

Iran denied any involvement in the strike in Jordan.

Separately, Houthi rebels based in Yemen continue to attack shipping vessels in the Red Sea. The U.S. and its allies have attacked targets of those militants to try to secure global trade.

Strategists at Goldman Sachs estimate that oil flows through the Bab El Mandeb Strait at the southern end of the Red Sea have seen a drop of some 1.2 million barrels a day since the shipping attacks started in December.

The route is important for other goods as well. Roughly 20% of the clothes and shoes imported into the U.S. use the Suez Canal, according to Steve Lamar, CEO of the American Apparel & Footwear Association, cited by MarketWatch. In Europe: 40% of clothes and 50% of shoes come through the Red Sea route.

West Texas Intermediate, the U.S. benchmark, rose 0.1% to $78.06 a barrel. Brent crude, the international standard, added 0.1%, to $83.60. Both contracts gained about 6% last week.

Oil stocks were mixed in premarket trading. Exxon Mobil was unchanged. Chevron fell 0.3%. American depositary receipts of Shell and BP rose 0.3% and 0.6%, respectively.


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This is not investment advice. Past performance is not an indication of future results. Your capital is at risk, please trade responsibly.


Author:

Paul Reid
Paul Reid

Paul Reid is a financial journalist dedicated to uncovering hidden fundamental connections that can give traders an advantage. Focusing primarily on the stock market, Paul's instincts for identifying major company shifts is well established from following the financial markets for over a decade.