International financial markets are subject to volatility from "summary" of The Economics of Money, Banking and Financial Markets, eBook, Global Edition by Frederic S. Mishkin
International financial markets are subject to volatility due to various factors that can cause sudden and unpredictable changes in asset prices. These factors include economic indicators, geopolitical events, changes in monetary policy, and shifts in investor sentiment. Economic indicators such as GDP growth, inflation rates, and unemployment figures can have a significant impact on financial markets. Positive or negative news regarding these indicators can lead to fluctuations in asset prices as investors reassess their expectations for future economic performance. Geopolitical events, such as wars, political instability, and trade disputes, can also create uncertainty in international financial markets. These events can disrupt supply chains, increase geopolitical risk premiums, an...
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