What are the centers of economic power?

power

Of course, if you are going to invest your savings in the equity markets, you will have no choice but to be aware of the centers that are the ones that mark the economic power of the world. Where all investors focus their eyes to know what they have to do at all times. Yes open positions in financial assets or, on the contrary, undo their positions in the financial markets. With the advantage that these financial centers will give you guidelines on what to do in your operations on the stock market.

The centers of economic power are not many, but of course they are very important. To the extent that they determine the evolution of financial markets, in one sense or another, as has happened in recent years. Not surprisingly, it can be a powerful tool to earn money in each of the operations that you are going to open from now on. Or at least as investment protection. Because you cannot forget that they will give you very valuable information about the real state of the world of money.

To go to the true centers of economic power you will have to go to such emblematic places as Washington, Frankfurt or Vienna. Nor can you forget that these towns are centers of the most important economic organizations. From which emanate the most relevant decisions that affect the equity markets. Sometimes with very strong oscillations that can reach 5% and that are very conducive to carrying out trading operations or in the same trading session.

Power centers: the direction of the exchanges

euros

At this point you may be wondering where these economic centers of the world are located. In particular, so that you can be very aware of them to channel your operations in the stock market. They are distributed throughout the international geography, even if they are the American and European continents where they are mostly represented. With centers that are in the news of the main countries of the world. Not surprisingly, they also partly decide on your monetary life. To the point where all economics agents they are aware of their decisions.

Of course, one of the most important centers of economic power is undoubtedly the German city of Frankfurt. Not surprisingly, it is the permanent headquarters of the European Central Bank (ECB) which is the one who dictates monetary policies in the euro zone and is chaired by the Italian Mario Draghi. It has had and continues to have a huge stock market influence. To the point that it can make the financial markets fall or rise at any moment. That is why it is not strange that it is an instrument that you can use your operations in the stock market.

Vienna, the oil capital

Very close to the financial capital of Germany is the Austrian capital, Vienna. It has been the headquarters for many years of the Organization of Petroleum Exporting Countries (OPEC). Where the strategies of this important financial asset are forged. Where it can catapult the price of crude oil based on the decisions made by the producers of this financial asset. Of course, the equity markets are also very aware of what is being forged in these meetings by some of the most powerful countries in the world.

On the other hand, any decision made by its members serves to reduce their production and thus the price of oil rises in the financial markets. Either to make investment decisions in oil or, on the contrary, through the securities most closely linked to this raw material and which are listed on the stock market. This is a very effective strategy to gauge where the shots are going to go in the coming weeks and in this way to make effective savings profitable. As is happening in recent months with the revaluation of this financial asset that has exceeded the important levels of the 70 dollars a barrel.

Washington or the power of the dollar

dollar

The capital of the United States continues to be one of the neuralgic points to follow the economy from an investment point of view. Not only because it is the residence of the president of the richest state in the world. But because it is where decisions are made by the Federal Reserve of the United States (FED). In everything that has to do with the price of money and with a direct impact on all economic areas of the world. To the point that a good part of investors turn their eyes to this part of the planet to shape their investment strategy. Depending on the monetary policies they take in this organism of special international relevance.

To speak of Washington is to refer to relations with the financial markets. Although these are located in New York, represented in Wall Street which is where millions and millions of titles are exchanged every day. In what is considered one of the cradles of modern capitalism and which is a point of reference for a large part of small and medium investors around the world. To the point that the main stock indices depend on the movements that occur in this important part of the world. As it will have happened to you on more than one occasion when making investments and trying to make the accumulated assets profitable after many years of work.

Headquarters of the Monetary Fund

Without leaving the same destination we find another organism of special relevance such as the  International Monetary Fund (IMF). Or what is the same, where the most important decisions are made for the economic future of the planet. Not surprisingly, it is more aimed at promoting policies of economic expansion between countries and favoring international monetary cooperation. If this international organization is characterized by something, it is because it tends to correct economic imbalances in the main countries of the world. As it has happened after all in a good part of them, including Spain.

Of course, all markets are sensitive to their reports, and as a consequence of them the stock indices oscillate in one direction or another with particular intensity. To the point of causing very strong movements in financial markets. With important differences between the maximum and minimum prices of the securities and that in some cases may exceed 2% or 3% levels. Very much to the liking of speculative investors who see how in a short time they can get a significant portfolio of capital gains. Always aware of what the International Monetary Fund may say at any time.

The City a very decisive market

London

Within the European continent, London plays a very important role in international finance. Above other capitals with a special presence in international relations. Not surprisingly, the British capital is considered one of the great epicenters to make investments. Not only in the stock market, if not for any kind of financial asset. Raw materials, precious metals and financial derivatives among some of the most important where you can make the savings profitable from now on. Everything is bought and sold in the City and it happens to be a reference for any investor. Nor can it be forgotten that a good part of the financial intermediaries around the world are established.

It is the paradigm of globalization as it is present in all the economic zones of the world and as few financial markets do at this precise moment. All this despite having recently separated from the European institutions as a consequence of brexit which was approved last year. But that has not diminished the relevance of this European place in the new financial order. Not surprisingly, UK equities are one of the most important in the world. With a trading volume of the highest of all the international stock markets.

As a strategic measure

As you may have seen, there are several centers of economic power from which you can have a reference to take positions in the stock market from now on. With the primary objective of improving your personal assets. Because you will have more information with which to apply them to the decisions you are going to make. Not only when it comes to outright investment in the stock market. If not on the contrary, opt for other alternative solutions that until now you would not have considered to make the savings profitable.

Of course, you cannot forget that these financial centers can be a solution to promote a well-defined investment strategy. In which, above all, having analysis tools to make the best possible decisions is paramount. Above other technical considerations and even from a more strategic point of view. So that in this way you achieve all your objectives in the stock market sector. With better results in your investment account.


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