Page 8 - Orient Finance PR Report - March 2024

How Geopolitical Events Shape Global Financial Markets - OneArabia
Understanding The Influence Of Global Events On

Financial Market Shifts

By Seraj Asad Khan In today's interconnected world, the influence of global events on the financial sector

can be significant. Financial instruments are sensitive to changes in economic, geopolitical, and market conditions. This

has been often seen in the over-the-counter (OTC) marketplace and forex trading. The OTC market, a decentralized
arena for trading financial instruments, such as derivatives, currencies, stocks, bonds and commodities, operates on a

unique dynamic influenced by a myriad of factors. Global events play a crucial role in shaping the landscape of this

market.

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With billions of CFD trading and buying of shares occurring daily worldwide, any major economic event, from pandemics

to geopolitical shifts, may have an immediate and profound effect on the prices and rates of commodities or shares.

Global economic shifts frequently result in the emergence of new variables that raises volatility and unpredictability in

the market, such as major price fluctuations, thus requiring traders and investors to pay closer attention on economic

calendars, global news, and central bank statements.

When it comes to trading currencies, interest rates are frequently determined by central banks, and fluctuations in these

rates can affect the value of currencies. Higher interest rates tend to attract more foreign money seeking higher returns,
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