For anyone interested in understanding the world’s economic pulse, creating a global economic watchlist can be an invaluable tool. A well-rounded watchlist helps track the health and trends across key sectors, providing insights into market sentiment, economic cycles, and even geopolitical influences. Below is a guide on which categories and indicators to include for a global overview.

1. Metals (Commodities)

Metals play a critical role as both industrial assets and economic indicators. Key commodities to watch include:

• Gold (GC): Often a safe-haven asset, gold prices tend to rise in uncertain times and can signal inflation trends or market sentiment shifts.
• Silver (SI): Used in industrial applications as well as a store of value, silver serves as both a complement to gold and a proxy for industrial demand.
• Copper (HG): Known as “Dr. Copper” due to its correlation with industrial health, copper prices can give insights into economic growth, especially in construction and manufacturing.
• Platinum/Palladium: These metals are vital in automotive and tech industries, often reflecting trends in those sectors and signaling shifts in industrial production and consumer demand.

2. Energy (Commodities)

Energy prices directly influence economic performance and consumer costs, making them crucial indicators.

• Crude Oil (WTI and Brent): A benchmark for global energy markets, oil prices are closely tied to economic growth, especially in oil-dependent industries and regions.
• Natural Gas (NG): Natural gas prices often fluctuate seasonally but are significant in heating demand and energy cost tracking.
• Coal: While less commonly tracked, coal still plays a significant role, especially in Asia, where it remains a primary energy source.

3. Currencies (Forex)

Currencies reveal insights into trade, monetary policy, and risk sentiment across major economies.

• U.S. Dollar Index (DXY): Tracking the dollar’s value against a basket of major currencies, the DXY is an indicator of global risk appetite and economic confidence.
• EUR/USD: As Europe’s primary currency pair, EUR/USD movements reflect broader Eurozone economic trends and global investor sentiment.
• USD/JPY: The Japanese yen is a safe-haven currency, and the USD/JPY pair often indicates risk sentiment and economic stability in Japan.
• GBP/USD: The British pound can be sensitive to U.K. economic conditions, trade relationships, and EU dynamics.
• AUD/USD: The Australian dollar is closely tied to commodity demand, especially from Asia, making it a barometer for global trade trends.

4. Equities (Stock Markets)

Tracking stock indices offers a snapshot of economic health and corporate profitability in key regions.

• S&P 500 (US): This index is a proxy for the U.S. economy and is often seen as a bellwether for global markets.
• MSCI World Index: Covering equities across developed markets, the MSCI World Index provides a broad view of global market trends.
• Nikkei 225 (Japan): Reflects economic health and investor sentiment in Japan and Asia.
• FTSE 100 (UK): With many large energy companies listed here, the FTSE provides insights into the U.K. economy and global commodity markets.
• DAX 30 (Germany): Tracking Germany’s economic health, the DAX is a key indicator for European market sentiment.
• Shanghai Composite (China): Reflecting investor sentiment in China, this index serves as a gauge for emerging market trends.

5. Fixed Income (Bonds)

Bond yields reflect investor sentiment regarding risk, inflation expectations, and monetary policy.

• U.S. 10-Year Treasury Yield: A closely watched indicator that reflects risk sentiment, inflation, and future interest rate trends.
• German 10-Year Bund Yield: This is a key European benchmark, reflecting EU economic health and investor confidence.
• Japanese 10-Year Government Bond (JGB): Important for tracking Japan’s economic stability and monetary policy trends.

6. Volatility Indicators

Volatility indices offer insights into market stability and investor sentiment.

• VIX (CBOE Volatility Index): Known as the “fear gauge,” the VIX measures expectations of future volatility in the stock market.
• MOVE Index: This index tracks bond market volatility and is useful for understanding bond investor sentiment.

7. Economic Indicators and Data Points

Monthly economic data releases provide key insights into job growth, manufacturing activity, and inflation trends.

• U.S. Nonfarm Payrolls: A monthly report on job creation in the U.S., this is an essential indicator of economic health.
• PMI (Purchasing Managers’ Index): With separate indexes for manufacturing and services, PMI data for major economies like the U.S., EU, and China gauge business sentiment.
• Inflation Rates (e.g., U.S. CPI): Inflation trends, such as those shown in the U.S. Consumer Price Index (CPI), provide guidance on monetary policy directions.

8. Emerging Markets Currencies and Indices

Emerging markets play a unique role in the global economy, providing growth opportunities and reflecting broader economic trends.

• Emerging Market Index (MSCI Emerging Markets): This index tracks stock performance in developing markets, offering a snapshot of emerging economies.
• USD/BRL (Brazilian Real): A proxy for Latin American economic health, reflecting Brazil’s commodity-driven economy.
• USD/CNY (Chinese Yuan): As China is a global trade leader, this currency pair reflects China’s economic strength and trade balance.

9. Cryptocurrencies (Digital Assets)

Digital assets have emerged as alternative investment assets, with their performance often tied to broader risk sentiment.

• Bitcoin (BTC): Often seen as “digital gold,” Bitcoin reflects investor appetite for digital assets and is increasingly tied to risk sentiment.
• Ethereum (ETH): As a leading altcoin, Ethereum represents broader trends in blockchain technology and has significant influence on the digital asset market.

Building a global economic watchlist involves monitoring a diverse range of sectors and assets. By keeping tabs on commodities, currencies, equities, bonds, volatility indices, economic data, emerging markets, and cryptocurrencies, investors and analysts can gain a holistic view of market trends and economic health. This watchlist can help you spot early signs of market shifts, economic trends, and opportunities, providing a valuable tool for navigating the complexities of the global economy.