Macro investor

Every week several economic surveys and indicator reported on on in the economic news. Intact, there are so many, and the data points often makes such small moves, some times makes trends. Some data's highly impact the market movement. Macro investor keep the details finger on the pulse of economy. This article will explain some of the important economic indicators.
             
Basically, macro investor follow the macro data's, always the would take  investment isdecision on the basis macro economic. Some data's impact the specific sector and individual stock. Here are listed some important macro factors.
 Gross domestic production, inflation, interest rates, foreign exchange and oil and commodity.

                                           GDP Data
GDP is the most widely used measure of macro economic performance. Figure for GDP are released quarterly by commerce Dept. These figures are typically expressed in real term as an annualized quarter to quarter percentage change, which is referred to as real GDP growth rate. The over all rate at which the economy is growing ia an important determinant of the rate at which many businesses can grow. The most commonly used definition of an economic recession is two consecutive quarters of negative real GDP growth. Economist carefully monitor many leading indicators of GDP growth in an attempt to predict is future movements.

                                   Interest Rates

Interest rates reflect the cost of borrowing money and affect business performance in two important ways. First, interest rates determine the price, the firm must pay for it's own capital. Other things equal, lower interest rate mean less interest expense and higher profits. Low interest rate also reduce the cost of capital, increasing the number of viable investment opportunities.

                                   Inflation

Inflation is defined as a geared rise in price level. Inflation creates the gap between real and nominal economic effects. In time of high and uncertain inflation, the risk from investing in financial assets increase and the credibility of the domestic currency is undermined in global currency markets faced with such risk, investor will take their capital to countries without such uncertainty or invest directly in commodities such as gold that provide hedge against inflation.

                                  Foreign exchange

Foreign exchange rates describe how many units of one currency many of the inputs bought and output sold by domestic businesses are transactions with foreign entities. As the relative value of the US dollar value rises, the cost of foreign inputs decreases and the revenue from foreign sales also decreases. This, the impact of foreign exchange rate fluctuations on a business depends not only on whether exchange rates go up or down, but also on whether the firm is a net importer or exporter in a particular currency. Foreign exchange rates are driven by a complex variety of factors, including the relative productivity of capital and labor, relative inflation rates and relative real interest rates.

                           

                         Oil and other key commodities

Commodity prices affect the cost of all businesses. The most important commodity price at the macro level is the price of oil. Oil price tend to be volatile, due to the connection of large proportion of the world's oil reserve in a small number of countries. Increase in oil prices lead to increase in transportation and energy cost that affects nearly all businesses. Increase in the oil prices also reduce the amount of income that consumers have to spend on other products. Obviously, different industries have different key commodity inputs.

          Aside, from the economic indicators above, other important factors to consider in year macro economic analysis are corporate hedging activities  and the business cycles.