3 Things Traders Should Watch Out for in Q3
The third quarter of the year is often volatile for the financial markets, 2023 probably won’t be any different. Traders always need to adapt and adjust to new economic data and geopolitical developments. Today, we’ll dig a little into these topics and then outline some of the most impactful events coming up this week.
Top 3 things to keep an eye on this quarter
As we shift into Q3, traders around the world are eagerly analysing market trends and preparing their strategies for the months ahead. They do that because it’s crucial to stay up-to-date and adapt to changing conditions. The difficult bit is that it’s quite a tough thing to do.
There are tons of events that can have an impact on your portfolio or trading decisions, we’ve listed just a few here.
#1 Economic data and central bank decisions
Economic data releases are important in shaping market sentiment and influencing trading decisions.
Traders should pay close attention to key indicators like GDP growth, inflation rates, employment figures, and consumer confidence. All these pieces of data help to provide insights into the overall health of an economy and that, ultimately, will play a big part in shaping the performance of whatever asset class they’re interested in.
Central bank policies also have a substantial influence on the market. Traders should definitely be monitoring the statements and decisions made by central banks, particularly those of major economies such as the United States, the EU, and China.
#2 Geopolitical tensions
The ongoing conflict in Ukraine is a major risk factor for the markets. If the conflict continues to escalate, it could lead to a sharp sell-off in risk assets.
In general, geopolitical events and trade relations are critical factors that affect global markets. Tensions between nations, trade disputes, and political developments can swiftly impact investor sentiment and market stability.
In Q3, traders should closely follow any geopolitical developments they encounter. These can include elections, policy changes, and diplomatic relations.
#3 Technological innovation and regulatory changes
This isn’t really exclusive to Q3, but advances in technology and the connected regulatory changes can cause severe structural volatility in the financial landscape.
One great example of this is crypto. Since 2017 in particular, the asset class has gained significant attention, investor popularity and an ever-increasing market capitalisation. Yet, as new regulatory frameworks emerge, certain prosperity has ebbed as the market adjusts to the new norm.
Traders should stay updated with regulations. Any change in policy can lead to sharp price fluctuations.
Overall, like all quarters, Q3 is likely to be a volatile period for the markets. Traders should always exercise caution and be prepared for any surprises!
Let us know what you think!
Do you have anything to add? What’s the number one thing you’re wary of this Q3? Tweet us at @_contentworks.
Top fundamental events week commencing 10.07.23
Ready for the week ahead? Here’s everything you need to know about.
Monday, July 10
● CNY — Inflation Rate YoY
Tuesday, July 11
● AUD — Westpac Consumer Confidence Change; NAB Business Confidence
● German ZEW Economic Sentiment Index
● GBP — Unemployment Rate
Wednesday, July 12
● AUD — RBA Gov Lowe Speech
● USD — Core Inflation Rate YoY; Core Inflation Rate MoM; Inflation Rate YoY; Inflation Rate MoM
● CAD — BoC Interest Rate Decision; BoC Monetary Policy Report
Thursday, July 13
● CNY — Balance of Trade
● GBP — GDP MoM
● USD — PPI MoM
Friday, July 14
● USD — Michigan Consumer Sentiment Prel
Here at Contentworks we closely follow market movements and prep content that we think your traders would love to read. Let’s get you started right here.
Speak soon!
The Contentworks team
