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How does the wider economy reach markets?
Inflation, rates, growth, currencies, credit and the calendar of economic information.
- 01Economy & context · beginnerRead guide
Inflation
Inflation is a sustained rise in a broad measure of prices, reducing the purchasing power of a unit of money. Different households and businesses experience different price baskets.
- 02Economy & context · beginnerRead guide
Interest rates
An interest rate is the price of borrowing or reward for lending over time, expressed under a stated convention. Different rates reflect term, currency, credit, liquidity and policy.
- 03Economy & context · beginnerRead guide
Central banks
Central banks manage monetary policy and core parts of the monetary and financial system under legal mandates. Their tools influence conditions but do not control every market price or economic outcome.
- 04Economy & context · beginnerRead guide
Economic growth
Economic growth is an increase in the inflation-adjusted output of an economy over time, commonly measured through real gross domestic product. It is an aggregate, not a complete measure of wellbeing.
- 05Economy & context · beginnerRead guide
Recessions
A recession is a broad, significant decline in economic activity under the relevant national or analytical convention. Simple consecutive-quarter rules are useful shorthand, not universal definitions.
- 06Economy & context · beginnerRead guide
Employment data
Employment data describes jobs, unemployment, participation, hours, vacancies and pay under survey or administrative definitions. Each measure covers a different part of the labour market.
- 07Economy & context · beginnerRead guide
The Consumer Prices Index
The Consumer Prices Index measures price change for a representative basket of household goods and services under a published methodology. It is a weighted index, not a list of every person's expenses.
- 08Economy & context · intermediateRead guide
Producer prices
Producer-price indices measure price changes at specified stages of production, such as inputs bought or outputs sold by businesses. They differ from consumer prices in coverage and timing.
- 09Economy & context · intermediateRead guide
The yield curve
A yield curve plots yields for comparable debt across maturities at one time. Its level and shape reflect policy expectations, inflation, term compensation, supply, demand and credit conditions.
- 10Economy & context · beginnerRead guide
Bond yields
A bond yield relates expected contractual cash flows to the bond's current price under a defined calculation. Yield rises when price falls, all else equal, but realised return can differ.
- 11Economy & context · beginnerRead guide
Government bonds
Government bonds are debt securities issued by national or other public authorities. Their risks depend on currency, maturity, inflation, fiscal capacity and legal terms.
- 12Economy & context · intermediateRead guide
Corporate bonds
Corporate bonds are company debt securities with contractual interest and repayment terms. Their yields combine benchmark rates, credit risk, liquidity and contract features.
- 13Economy & context · intermediateRead guide
High-yield bonds
High-yield bonds are corporate debt rated below investment grade or carrying comparable credit risk. Higher promised yield compensates for greater default, recovery and liquidity uncertainty.
- 14Economy & context · advancedRead guide
Credit spreads
A credit spread is the yield difference between a credit-risky instrument and a chosen lower-risk benchmark after matching relevant terms. It reflects expected loss, uncertainty, liquidity and risk appetite.
- 15Economy & context · intermediateRead guide
Monetary policy
Monetary policy uses central-bank tools to influence inflation, demand and financial conditions under a legal mandate. Its effects travel through expectations, rates, credit, assets and currencies with lags.
- 16Economy & context · intermediateRead guide
Fiscal policy
Fiscal policy is government taxation, spending and borrowing used to fund services and influence the economy. Its impact depends on timing, design, financing and economic capacity.
- 17Economy & context · beginnerRead guide
Exchange rates
An exchange rate is the price of one currency in units of another. Every quote is a pair, so a rise or fall must name which currency strengthened.
- 18Economy & context · beginnerRead guide
Commodities
Commodities are standardised raw materials such as energy, metals and agricultural goods. Investment exposure often uses futures, so returns need not match a spot-price chart.
- 19Economy & context · intermediateRead guide
Emerging markets
Emerging markets are countries or securities classified as developing under provider-specific economic and market-access criteria. The group contains diverse institutions, currencies and risks.
- 20Economy & context · beginnerRead guide
Earnings season
Earnings season is the period when many listed companies report periodic results. The clustering creates a dense flow of company and sector information rather than one formal market event.
- 21Economy & context · beginnerRead guide
The economic calendar
An economic calendar lists scheduled data releases, policy decisions and other known events. It organises timing; it does not predict the numbers or market reaction.
- 22Economy & context · intermediateRead guide
Market sentiment
Market sentiment is a broad label for investors' prevailing risk appetite, expectations or positioning. It is inferred through surveys, prices or flows and has no single canonical measure.
- 23Economy & context · intermediateRead guide
Hedge funds
Hedge funds are privately offered pooled vehicles using a wide range of strategies, instruments and fee structures. The label describes a legal and organisational family, not one risk profile.
- 24Economy & context · beginnerRead guide
Cryptocurrency basics
A cryptocurrency is a digitally represented asset whose ownership and transfer are recorded under a cryptographic network protocol. Rights, governance and economic purpose vary widely between tokens.