What are some of the issues that have a bearing on financial markets?

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Ashley Kannan eNotes educator| Certified Educator

Issues that are not directly linked to economics bear impact on a financial market.  One of these issues is political.  In order for financial markets to emerge and commerce to be facilitated, there has to be a government in place that will allow such development and growth to happen.  Governments that are not pro- growth and pro- business have a tendency to nationalize such industries, killing off the chance of individual entrepreneurship, proving that the role and extent to which government will intervene through taxation and control is an issue that has bearing on a financial market.  Along these lines, the stability of a nation impacts financial markets.  If a nation is under siege, being threatened by another nation, or lacks the global stability required for business growth, this will impact financial markets.  A nation that has been devastated by armed conflict and wars will have different receptivity to financial markets than one which is in peace and possessing the stability to grow and nurture.  Another issue that has bearing on a financial market is the role of research and development.  Scientific inquiry and progress can play essential roles in the emergence of financial market.  For example, advances in information technology impacted the outreach of markets and globalization, possessing significant impact on new financial venues.

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