StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Market Security Valuation - Essay Example

Cite this document
Summary
Name Institution Course Instructor Date Market Security Valuation Markets update is an essential tool used by economists to evaluate trends observed in the market and focus on how to manipulate the future trends to ensure market stability (Payden & Rygel)…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER91.3% of users find it useful
Market Security Valuation
Read Text Preview

Extract of sample "Market Security Valuation"

Download file to see previous pages

Headlines of Market Development in the Past Week Survey on ISM manufacturing registered a growth of 1.0. The growth increased moved from 53.4 to 54.4 suggesting that manufacturing sector has a steady growth (Payden & Rygel). FOMC Minutes posted a negative growth in the market with regard to previous trends. The market concern has focused on possibility of FOMC Minute falling off in second quarter in 2012. ISM Non-Manufacturing survey registered a slow growth in the last month. The survey showed the trends at 56.

0 up from 57.0 and further 1.3, a fall from February trends, which stood at 57.3. However, the trend does not create any course of alarm. Initial Jobless Claims has posted a strong grip from the previous trend with 357,000 claims last week (Payden & Rygel). The observation suggests a continued downward trend. The financial market report suggests that the market is progressing well because an increase in number of jobless entering into the payroll suggests a growth in the money market. The trend suggests that a further drop in jobless claim would occur when the market remains stable.

The job data suggests an improvement in US economic fundamentals. In most cases, increase in jobless claims is an indication of debilitating market. Major Global Releases and their Impacts Europe stock went down by -2.47%. Eastern Europe markets registered varied outcomes in the market. A survey on the Manufacturing Purchasing Manager’s Index (PMI) indicated an improvement in first quarter of 2012. A survey in Hungary’s PMI indicated an upward trend from 51.2 to 56.8 (Payden & Rygel). Analysts believe the trend observed was because of increase in demand from external players in the month of March.

Czech Republic registered a growth in PMI from 50.5 to 52.1because of new orders and higher readings. Poland posted a stagnated result as observed 50.0 to 50.1. The probable reason for the above result is the consumption behavior in the domestic market and earlier weaknesses observed in the Euro area (Baker& Nofsinger 554). The average trend for the PMI was above fifty, which a positive mark is considering the trends in the last quarter of 2011. Global Currencies and Bonds Global bonds did not post an active result during the week.

Many investors are speculating to see the trends in the next week. German Bund and Short dated UK Gilt did not register any change of marketing trends in Bank of England and ECB (Payden & Rygel). Spanish market indicated an increased borrowing because of auctioning of Spanish Government debts. The observation tends to suggest that Spanish is unable to solve its fiscal problems without seeking monetary assistance from IMF or EU. Further, observation indicates that tensions created in the Spanish market influenced Portuguese and Italian debt markets.

Conversely, sovereign yields were strong over Bund in this week’s market. US currency gained in the currency market versus major currencies in the US reserve. Analysts suggest that March FOMC US Federal Reverse’s meeting had a stake in the quantitative easing. The Draghi’s comment had an influence on weakening of EUR. Australian dollar registered a continuous weakening of greenback. The trend has influenced Reserve Bank of Australia to create constant rates speculating of the changes that are likely to occur in the coming months.

Emerging Market Bonds The trends observed in the market indicated that tight gains for emerging dollar pay debts. Standard and Poor included Uruguay in the Investment grade which restored

...Download file to see next pages Read More
Tags
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Market Security Valuation Essay Example | Topics and Well Written Essays - 1000 words”, n.d.)
Retrieved from https://studentshare.org/macro-microeconomics/1397419-economic
(Market Security Valuation Essay Example | Topics and Well Written Essays - 1000 Words)
https://studentshare.org/macro-microeconomics/1397419-economic.
“Market Security Valuation Essay Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/macro-microeconomics/1397419-economic.
  • Cited: 0 times

CHECK THESE SAMPLES OF Market Security Valuation

Concepts of Systematic and Unsystematic Risk, Variance, Covariance

Whether the present value of cash flow approach and the relative valuation approach to security valuation can be considered to be competitive or complementary Valuation is the process of determining the value of an asset.... hellip; Present value of cash flow approach to security valuation has three subdivisions of measuring the value of an investment.... Relative valuation approach to security valuation offers information on how the market is presently valuing the stock....
6 Pages (1500 words) Essay

Efficient Markets Hypothesis

… The efficient markets hypothesis forms the basis for one of today's major theories of the trading and valuation of financial instruments such as corporate stocks and bonds, as well as many other forms of equity or debt.... The advent of portfolio theory has strengthened the efficient market hypothesis by focusing 3 on the valuation of an entire portfolio of many securities rather than on each one's value....
4 Pages (1000 words) Essay

The Efficient Market Hypothesis and Michael Jensen Arguments

But in the longer term, the markets are efficient processors of information and get valuation about right” In addition, the random walk theory indicates that price movements will not follow any trends and so by knowing the past price movements it's not possible to predict the future price movements.... This paper seeks to analyze the Jensen argument in 1978, quoted by Pike& Neale that the efficient market hypothesis is the “best-established fact in all of social science”....
5 Pages (1250 words) Essay

The Valuation of Intellectual Property for Various Purposes

More than 30 approaches to the valuation or measurement of intangibles have emerged in the past 10 years (Andriessen, 2004).... Some approaches to valuation have evolved from others for evaluation, potentially confounding finance tools with those for measuring internal performance indicators; for example, where human resources may be regarded as the "knowledge assets" of a company (Andriessen, 2004, p.... The proliferation of many methods and labels, all chasing many metrics, seems to be working against a common understanding of the fundamentals in the valuation of intellectual property....
15 Pages (3750 words) Term Paper

Collateralized Mortgage Obligation

The findings herein determined that there cannot be the achievement of any dramatic increases in foreclosure frequency… Therefore, there is insignificant of relationships in RQ 1 through RQ 3; hence, the same could not provide the basis of determining a standard pricing model for valuing This descriptive research aimed at studying the numerous valuation methodologies of prepayment speeds with Collateralized Mortgage Obligations (CMO) tranches in order to analyze the importance of these valuation methods in dealing with the complexities of the current economic scenes....
101 Pages (25250 words) Essay

Business Plan Project for a Security Guard Company SecureIT

The study describes the business plan project for a security guard company SecureIT.... hellip; The company aimed at providing quality security services that will cover the provision of guards to different premises, conducting private investigations and the provision of consultancy services to the customers.... Its marketing strategy focuses on the provision of a website for communication and a high tech system that provides support for gaining the necessary intelligence for security purposes....
9 Pages (2250 words) Case Study

Techniques for Conducting Company Analysis and Stock Valuation

This paper “Techniques for Conducting Company Analysis and Stock valuation” investigates asset-based methods (ABT), using comparables techniques (UCT), free cash flow techniques (FCF), option-based evaluation (OBVT) and individual applications techniques (SAT).... In stock valuation and company analysis, there are earnings per share (EPS) which entails the measurement of earnings in coming up with an apples-to-apples comparison.... nbsp;Options-based techniques entail the analysis of the company as well as the valuation of its stock as an alternative approach since it takes full consideration of the risks associated with a venture....
4 Pages (1000 words) Assignment

Property Investment in The Global Economy

Commercial properties are just like any other commodities, whose evaluation and estimation in terms of value needs to be performed by a central authority that is not only accepted universally but which also makes use of accepted and time tested procedures while performing the required procedures during valuation.... Its activities encompass diverse areas associated with properties ranging from construction, legal aspects to property valuation.... he commercial property market in the United Kingdom is one of the four largest markets within Europe and as such, represents a very integral part of the European and world real estate markets (Crosby & Matysiak, 2002)....
9 Pages (2250 words) Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us