GLOBAL ECONOMIC EVENTS AND THEIR EFFECTS ON FINANCIAL MARKETS

Abstract

Global economic events play a pivotal role in shaping financial markets, often triggering significant shifts in investor behavior and asset prices. This article examines the influence of major economic events—such as pandemics, geopolitical tensions, natural disasters, and policy changes—on global financial markets. The article illustrates how such occurrences affect market volatility, investor mood, and sector performance by examining both historical and contemporary situations. It also looks at the ways in which these occurrences impact various asset classes, such as bonds, currencies, stocks, and commodities. Investors looking to manage the intricacies of international markets and reduce risk brought on by economic uncertainty must comprehend these dynamics. The article concludes with strategies for investors to protect their portfolios and capitalize on opportunities arising from global economic events.