Facts and/or rumors can cause the value of the businesses that are listed and traded on the “World’s Financial Markets” to increase or decrease. You can also say that each market index is the average value of all of the businesses that are a part of each index.
For example, it is a published fact that about 14,000,000 people within the United States of America are currently unemployed and might or might not be seeking a job. That is a major business indicator that the businesses which are located within the United States of America are not making as much money as they are capable of making, causing those businesses to reduce the number of people that are employed by those businesses. The “Industrial Index” and the “Dow Jones Average” reflects the less than desirable business activity by showing that the average value of those businesses is far less than it was before 2008.
So too, rumors can be true or false but each rumor might or might not have a financial impact on a country or a particular business and can cause a rapid change in the value of that particular business or the financial well being of a country, in regard to its debts owed to other countries. A rumor that a particular business is about to go bankrupt can also cause the capital stock value of that business to rapidly decrease.
Positive or negative financial information that is issued and published by a governmental department, like the “Federal Reserve Board of the United States of America” and/or the “Treasury Department of the United States of America” has the greatest impact on the investors who trade shares of business ownership on the “New York Stock Exchange.”
A natural disaster or a war can cause a minor or a major change in the average value of one or more financial markets. Such was the case after a tidal wave caused a nuclear meltdown of three nuclear reactors within Japan. So too, “Arab Terrorists” and two wars caused the price for a barrel of crude oil to increase more than 300% since 2008. Some say that such events also caused “The Great Recession of 2008.”
So now you have several reasons that cause the value of the “Financial Markets of the World” to rise or fall, depending upon the events that occur on a daily basis. Without greed or the hunger for wealth the World would truly be a better place to live or if everyone was happy, healthy and wealthy.