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Monitor and predict the growth prospects and potential risks of the Financials industry by examining the financial and macroeconomic factors affecting it and the latest Financials news tracked by MacroVar. Sign Up Free to get notified instantly on the latest Financials updates and get full access to MacroVar advanced analytics of Global Financial Markets, Economies and Financial Risk.
Click to explore the factors and the financial models used by MacroVar to analyze the Financials industry trend, growth prospects and risks.
Financials industry Markets
Europe Financials industry EU.FINANCIALS 512.38 1 0.75 1.05322 66.7622 -1 -1.47 0.58 -0.09869
Europe Financials Senior Credit Spreads EU.FINANCIALSSENIOR.CR 91.08 -0.5 -1 -0.96435 30.8514 -0.48 0.12 -1.93 -0.03274
Europe Financials Subordinated Credit Spreads EU.FINANCIALSSUB.CR 149.24 -1 -0.75 -1.01113 30.1083 -0.21 -0.39 -1.39 0.03305
Financials industry News
Financials industry Analysis
MacroVar monitors the performance, risk, trend and momentum of the Financials industry by examining the stock and credit performance of major Financials companies across the US, Europe, Eastern Europe and Asia Pacific. Financials Stock performance is monitored by analyzing STOXX equity indices of major Financials companies while Financials credit performance is monitored by analyzing Markit iBoxx credit indices reflecting the performance of the Financials high yield corporate bond market.
MacroVar also monitors fundamental indicators closely linked to the Financials sector published monthly including analysis of sector specific PMI indicators, components of Manufacturing & Services PMI and Economic Sentiment Indicators analysis.
MacroVar also monitors other factors closely related to the Financials industry like closely related financial markets or macroeconmic indicators.
MacroVar estimates the following signals:: Financials momentum, Financials trend, Financials oscillator, Financials RSI and Financials returns.
Financials industry Description
The Financials industry includes the sectors of Banks, Insurance, Real Estate and Financial Services.
The Banks industry includes institutions providing a broad range of financial services, including retail banking, loans and money transmissions. sectors of Conventional Electricity and Alternative Electricity.
The Insurance industry includes the sectors of Nonlife Insurance and Life Insurance.
The sector of Nonlife Insurance includes the subsectors of Full Line Insurance, Insurance Brokers, Property & Casualty Insurance and Reinsurance. The subsector of Full Line Insurance includes Insurance companies with life, health, property & casualty and reinsurance interests, no one of which predominates.
The subsector of Insurance Brokers includes Insurance brokers and agencies.
Financials industry Momentum
MacroVar Financials momentum signal ranges from -100 to +100. The Financials momentum signal is derived as the mean value from 4 calculations for the Financials . The timeframes monitored are the following: 1 Day (1 trading day), 1 Week (5 trading days), 1 Month (20 trading days), 3 Months (60 trading days)
For each timeframe, the following calculations are performed: 1. Financials return is calculated for the specific timeframe and 2. if the return calculated is higher than 0, signal value output is 1 else signal value is -1. Financials momentum signal is the aggregate of the the 4 values. A technical momentum rollover is identified when Financials momentum signal moves from positive to negative value or vice-versa.
Financials industry trend
Financials trend signal ranges from -100 to +100. Financials trend indicator is the mean value of the 8 calculations described below. The timeframes monitored are the following: 1-month (20 trading days), 3-months (60 trading days), 6-months (125 trading days), 1-year (250 trading days)
For each timeframe, the following calculations are performed: 1. Financials Closing price vs Financials moving average (MA) calculation: If Financials is greater than Financials MA value is +1, else -1, 2. Financials Moving average slope calculation: if current Financials moving average is higher than the previous MA, Financials upward slope +1, else -1
Financials trend model can be used as a trend strength indicator. Financials trend strength values ranging between +75 and +100 or -75 and -100 show strong trend strength.
A technical trend rollover is identified when Financials trend strength indicator moves from positive to negative value or vice-versa.
The Financials 52-week simple moving average and its slope are the most important indicators defining a market’s trend. Financials is in an uptrend when Financials price is higher than the 52-week moving average and the Financials 52-week moving average has an upward slope. If fundamentals of the market have not changed and the moving average slope is still in uptrend, a price drop signifies a market correction and not a change of trend. Traders should watch oscillators like the Financials oscillator and Financials RSI to buy the dip and still follow the trend. The moving average slope turn signifies a change of trend.
Financials industry oscillator
The Financials oscillator estimated by MacroVar is the z-score of the currentFinancials price versus Financials 1-year simple moving average price. The formula for the Financials oscillator is:
Financials oscillator = (Current Price – 250 trading days Financials simple moving average price) / (250 days Financials price standard deviation)
Financials oversold conditions
Financials is oversold when it is subject to a persistent downward pressure due to extreme fund outflows. When the Financials is oversold it is often due for a rebound. Values of the Financials oscillator lower than -2.5 signify oversold conditions. It must be noted that the Financials oscillator must be analyzed ibn conjunction with the rest ofFinancials quantitative factors. Traders should pay less attention to overbought or oversold conditions during strong trends. They should pay close attention during counter trends and all combined with the Financials RSI.
Financials overbought conditions
Financials is overbought when it is subject to a persistent upward pressure due to extreme fund inflows. When the Financials is overbought it is often due for a correction. Values of the Financials oscillator higher than +2.5 signify overbought conditions. It must be noted that the MacroVar oscillator must be compared to the rest of the Financials quantitative factors. Traders should pay less attention to overbought or oversold conditions during strong trends. They should pay close attention during counter trends and all combined with the RSI.
Financials RSI indicator
During normal trend market conditions and when Financials is in a downtrend RSI values between 50-60 signify overbought conditions before the downtrend is ready to resume. DuringFinancials uptrend, RSI values of 40 to 50 signify oversold conditions before the uptrend is ready to resume. It is strongly not recommended to enter a position when the RSI is “overbought” and falling or vice versa.
Financials industry returns
MacroVar calculates Financials returns for the following timeframes: Daily, Weekly, Monthly, Yearly. The formula for calculating returns is:
Financials returns = (Financials Closing Price – Financials Previous Price)/(Financials Previous Price)