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Introduction to Financial Market Instruments. End of Course - Assignment Example

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A financial market brings sellers and buyers together for the purpose of trade in the financial assets like commodities, stocks, currencies, derivatives and bonds. Financial market’s chief purpose is to transfer risk and liquidity, raise capital and to set/locate prices…
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Introduction to Financial Market Instruments. End of Course Assignment
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Download file to see previous pages Together the capital and money markets are used to manage risk and liquidity for individuals, governments and companies. The main players in the financial market are banks, households, sovereign entities, firms, insurance companies and other financial institutions (Williams, 2011). The report will focus on the UK capital market including equities, corporate bonds and government debts, UK property and commodity markets of UK. The commodity market will include gold as well as oil markets of United Kingdom. Five year viewpoint of the following markets will also be provided in order to provide recommendation on the best asset class. Factors which will drive the upcoming performance of UK capital markets will also be taken into consideration.
The equity market of UK is the global market as more than 70% of profits generally come from the overseas; therefore it reflects the international market. It has fairly a big sector of resources and the mining and oil sector are the major sectors. They together contribute more than 15% and due to this reason the economy of UK is quite strong (Wall, 2015c). Though, the equity market of UK is expected to become volatile because of the turbulent election prevailing in the country. The overall increase of the revenue is also anticipated to remain exigent in the current year i.e. 2015. The alteration in the agenda of general election is the major reason of ambiguity for the equity market of the United Kingdom (Barnett, 2015). The main factor which is constantly overshadowing the equity market performance is the interaction between growing cynicism of the investors on the worldwide economic viewpoint and the capability of the policymakers towards creating the circumstances to strengthen prospects of growth where necessary. The recent euro zone performance and the Chinese economy’s presentation is concerning. This is due to the reason that weaker than anticipated progress in these regions ...Download file to see next pagesRead More
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