A Causal Relationship Between the Commodity Prices and the Stock Index - Article Example

The article titled 'Market Closes Lower As Bond Yields And Commodity Prices Fall' has been authored by David Reed. He states that the sales of various companies belonging to different sectors such as the mining and the automobile sectors experienced a decline. Furthermore, the author has pointed out in the article that although the currencies of the Eurozone as well as the United States have increased, they may soon be decreased since the European Central Bank is planning to inject money into the economy through the process of purchasing bonds.

One of the key takeaways from the article was that commodity prices and stock exchange index are linked with each other. The commodity prices and the stock index have a causal relationship. Another significant point is that commodity prices have an impact on the growth of different regions and not just one region. The third takeaway was that the government injects money in the economy through the central bank and one such method is the purchase of bonds.