Market Security Valuation - Essay Example

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