*Impact on Capital Markets: Commodity price movements can affect the earnings of companies in sectors like energy and agriculture, influencing stock prices.
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7. Government Spending and Debt:
*Impact on Money Markets: Government spending and debt levels can influence interest rates. High government debt can lead to higher borrowing costs, potentially impacting money market rates.
*Impact on Capital Markets: Government spending and debt can impact investor sentiment and influence the outlook for economic growth, impacting stock valuations and bond yields.
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8. Geopolitical Events:
*Impact on Money Markets: Major geopolitical events like wars or trade disputes can create uncertainty and volatility in financial markets, impacting money market rates.
*Impact on Capital Markets: Geopolitical events can significantly impact investor sentiment, leading to market swings and volatility in stock prices and bond yields.
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*Understanding the Impact:
