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Downing Street: British Prime Minister Starmer and Canadian Prime Minister Carney discussed the situation in the Middle East, including the impact of the continued closure of the Strait of Hormuz on international shipping.Downing Street: Leaders discussed the current situation in the Middle East and the importance of reopening the Strait of Hormuz to end the disruption to global shipping.Israel Defense Forces: The Israel Defense Forces continue to weaken the Iranian regime’s ballistic missile sites and defense systems in the west and central regions.The Israel Defense Forces (IDF) stated that it struck more than 200 targets in western and central Iran over the past day. Targets included command centers where regime personnel were active, defense systems, and weapons storage and production sites.March 16th - The Reserve Bank of Australia (RBA) will hold its second interest rate meeting of the year this week. The countrys already existing inflation problem has been further exacerbated by soaring energy prices triggered by the Middle East conflict. Economists expect the RBA to raise interest rates on Tuesday, increasing the cash rate to 4.1%, in response to the potential for rising oil prices to push up inflation. The money market sees a 75% probability of a March rate hike and anticipates further tightening. Bank of America economist Nick Steiner stated, "The Iranian conflict poses a significant upside risk to inflation, and we expect overall inflation to approach 5%." Australias inflation target is 2-3%. Steiner pointed out that given the current price pressures and tight labor market, the central bank has "virtually no room for maneuver." A failure to raise rates in March "could lead to more drastic tightening later, as high inflation would persist longer and affect public expectations."

What is fundamental analysis?

LEO

Oct 25, 2021 13:27

Fundamental analysis is a method of evaluating the intrinsic value of an asset and analysing the factors that could influence its price in the future. This form of analysis is based on external events and influences, as well as financial statements and industry trends.

Fundamental analysis is one of two major methods of market analysis, with the other being technical analysis. While technical traders will derive all the information they need to trade from charts, fundamental traders look at factors outside of the price movements of the asset itself.


There are various tools and techniques that can be used for fundamental analysis, but they have been categorised into two types of fundamental analysis: top-down analysis and bottom-up analysis. Top-down analysis takes a broader view of the economy, starting with the entire market before narrowing down into a sector, industry and finally a specific company. Conversely, bottom-up analysis starts with a specific stock and widens out to consider all the factors that impact its price.

Most fundamental analysis is used for evaluating share prices, but it can be used across a range of asset classes, such as bonds and forex.

The tools that traders might choose for their fundamental analysis vary depending on which asset is being traded. For example, share traders might choose to look at the figures in a company’s earnings report: revenue, earning per share (EPS), projected growth or profit margins. While forex traders may choose to assess the figures released by central banks that allow insight into the state of a country’s economy.


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