If you aren’t aware of these regular market reports, your trading could suffer

Two types of news have repercussions on most financial markets: breaking news events and scheduled economic reports.

A news event — political, social, and military, etc. — may seem far removed from the economy but nonetheless can impact the markets quickly and firmly. The impact may be minor and fleeting, or major and enduring. By its nature, breaking news is hard to predict and may cause some surprise in the markets.

In contrast, volumes of economic data are published regularly in reports that come out on predictable schedules. These reports give you a better picture of the underlying currents that drive the economy. Reserve bank officials use these reports to detect signs of inflation or deflation, and to set interest policy. The direction of interest rates will have a bearing on whether the economy continues to grow or goes into a downturn.

Some of the most awaited regular reports on the US economic calendar are these below.

1. Consumer Price Index (CPI). This is one report you shouldn’t miss because it is the most widely followed indicator of inflation in the country. Government officials and traders around the world watch closely the numbers in the CPI because all of them know that rising inflation could trigger an increase in interest rates. This report is very important for the economy as a whole and for the financial markets in particular. The report comes out on the 13th of each month at 8.30 a.m. EST.
2. Consumer Confidence Index (CCI). This reports the results of a survey tracking the attitudes and perceptions of 5,000 consumers toward the current economic conditions. It can be helpful in forecasting shifts in the economy, thus giving a trader an idea about the direction it is taking. Only index changes of five points or more are likely to be significant. The report is released on the last Tuesday of every month at 10.00 a.m. EST.
3. Durable Goods Orders. This provides information on the strength of foreign and domestic demand for US manufactured durable goods (new or used items with normal life expectancy of at least three years). A rising index suggests demand is strengthening, which could cause increases in production and employment. The report is issued around the 26th of each month at 8.30 a.m. EST.
4. Gross Domestic Product (GDP). This is the broadest measure of aggregate economic activity within the US, covering consumer spending, business and residential investments and price indices. It is a good indicator of overall economic health. A good GDP growth rate is between 2.0 and 2.5 per cent (with unemployment rate at 5.5 to 6 per cent). The data comes out in the third or fourth week of every month at 8.30 a.m. EST.
5. Employment Situation. It gives a rundown on the number of payroll jobs at all non-farm businesses and government agencies, as well as the unemployment rate, average hourly and weekly earnings, and the length of the average workweek. The report attracts a lot of interest because of its timeliness, accuracy, and its barometric importance as an indicator of economic activity. It has a significant influence on the psychology of financial markets during the month.Existing Home Sales. This monitors the selling rate of pre-owned houses, which usually comprise about 84 per cent of all houses sold in the month (new home sales take up the balance). It is a fairly good indicator of housing sector activity, offering a glimpse of housing demand and economic momentum. People buy a house only when they feel confident financially. The report comes out on the 25th of each month at 10 a.m. EST.
6. Producer Price Index (PPI). The index measures the average wholesale price of a fixed basket of capital and consumer goods — which results in a clearer indication of underlying trends in inflation. It has three main categories: industry, commodity, and stage-of-processing. It is important to track the PPI for its monthly stability (after removing food and energy prices). The report is released around the 11th of every month at 8.30 a.m. EST.
7. Retail Sales. The index is probably the timeliest gauge of spending patterns at the retail level, and gives a sense of emerging trends across various types of retailers. The trends can give traders indications of specific opportunities. The data comes out around the 12th of each month at 8.30 a.m. EST.
8. International Trade. The report measures US export and import trends. The report is released on the 19th of each month at 8.30 a.m. EST.Purchasing Managers Index (Chicago PMI).  The index is the result of surveys on more than 200 purchasing managers in the manufacturing industry. The crucial level is 50 per cent: readings above that indicate expansion in the factory sector; readings below indicate some contraction. The report is released on the last business day of the month at 10 a.m. EST.

These reports are very relevant indicators of economic performance, but not the only ones. It always helps to read the fundamental announcements before starting to trade. There is usually some volatility in the financial markets before the release of regular economic reports.