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

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

Cite this document
Summary
In this article, the author focuses on the impact of the decrease in the prices of different commodities as well as a decrease in the yields of bonds on stock exchanges throughout the world. The author states that due to falling in the prices of commodities various stock exchanges…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER93.8% of users find it useful
A Causal Relationship Between the Commodity Prices and the Stock Index
Read Text Preview

Extract of sample "A Causal Relationship Between the Commodity Prices and the Stock Index"

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.

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Write 3 learnings Essay Example | Topics and Well Written Essays - 250 words”, n.d.)
Write 3 learnings Essay Example | Topics and Well Written Essays - 250 words. Retrieved from https://studentshare.org/finance-accounting/1674255-write-3-learnings
(Write 3 Learnings Essay Example | Topics and Well Written Essays - 250 Words)
Write 3 Learnings Essay Example | Topics and Well Written Essays - 250 Words. https://studentshare.org/finance-accounting/1674255-write-3-learnings.
“Write 3 Learnings Essay Example | Topics and Well Written Essays - 250 Words”, n.d. https://studentshare.org/finance-accounting/1674255-write-3-learnings.
  • Cited: 0 times

CHECK THESE SAMPLES OF A Causal Relationship Between the Commodity Prices and the Stock Index

Effect of Oil Price on Kuwait Stock Market Index

In this research, there will be two hypotheses; null hypothesis, which will be that Kuwait stock market index, is not affected by change in oil prices and the alternate hypothesis will be that the Kuwait Stock market index is heavily affected by change in oil prices.... Research Objective To establish the relationship between the trend of oil prices and those of Kuwait stock market indices Significance of Study The research will be used to inform the factors that cause change in indices in the stock market and will be used to make recommendations on the various things that the government can implement so that they can prevent losses in the stock market....
8 Pages (2000 words) Dissertation

Stock Price and Trading Volume

First bond market (20) tests had been developed by Epps as to sustain the above mentioned theory and then later tests were developed upon stock markets (22). … Indications had shown that the relationship between the price change and trading volume had been greater when the share prices had ticked up in comparison to the share prices downticks.... A positive correlation between the price change and trading volume had been implied by the 'mixture of distributions hypothesis', only if the conditional indication of the stock price procession is in proportion to the quantity of new information into the market....
4 Pages (1000 words) Essay

Purchasing Power ParityBig Mac Index

he more common notion of purchasing power parity must be distinguished from a related theory known as relative purchasing power parity, wherein the relationship between the relative inflation rates of two countries and the change in the exchange rates of their currencies comes into play.... In the absolute definition of PPP, the Big Mac, a consumer good sold in practically every part of the world, takes the place of the commodity basket.... However, the difference between the market exchange rates and the PPP exchange rates can be somewhat significant....
4 Pages (1000 words) Essay

Conditions under which Exchange Rate May Overshoot Even in the Presence of Rational Expectations

hellip; Rational expectations relates to the efficient market theory as investors, based on their expectations, value a stock, for example, if they think earnings visibility is good, they bid the prices higher, and if perceive earnings visibility to be low, they bid prices to below and this is reflected in the stock prices, so their estimates or expectations are reflected in the stock prices.... The theory greatly applies to the stock markets around the world, as, if investors expect the price of common stock of a particular company to come down they go on a selling spree and the result is obvious, and when they expect it to go up they buy heavily and hence, the prices spirally....
10 Pages (2500 words) Research Paper

Stock and Commodity Markets

Establish a well studied relationship between the stock market trends, the commodity markets and the economies of nations.... Similarly if a listed company requires money for expansion or diversification, the company can tap the stock market for borrowing enough money.... stock and commodities market too are being made attractive by respective governments, which is also resulting in wealth creation for the citizens and companies alike.... If used judiciously, 'stock and commodity trading' greatly helps in tapping resources for developmental projects, welfare schemes and other such nation building exercises....
5 Pages (1250 words) Essay

US stock market Indexes

You can view all data of… The S&P 500 is another US index with the stocks of 500 Large-Cap corporations, mostly American.... Thus, S&P 500 is one of the many indices possessed and The index is used in the context of actual 500 companies having their stocks in it.... The S&P 500 comes on the second number as the most widely observed index of large-cap US stocks in comparison to the Dow Jones Industrial Average (DJIA), which is the no.... Otherwise, the S&P leads the US economy as a part of the index of leading indicators (“Real Time Charts,” 2008)....
4 Pages (1000 words) Research Paper

Relationship between Stock Market Prices and Macroeconomic Variables

In the absence of growth, the investor confidence is low and the stock prices are likely to slump.... This paper “Relationship between Stock Market Prices and Macroeconomic Variables” examines some of the relationships between the stock prices and market indices and the variables of the macroeconomic environment within economies of countries like the United States and England.... This is an indication that the indexes will rely majorly on the stock prices of the major companies in the capital market....
8 Pages (2000 words) Essay

Relationship between demand and price of house increasing in China

(2008) had Relationship between Demand and Housing Price Increase of the of the Contents Contents 2 Nature of Problem 3 The Research Question 3Literature Review 3Research Method 4References 5Nature of Problem Housing demand and prices are strongly related to one another and there are number of factors that influence the relationship between the two.... International house prices and macroeconomic fluctuations.... For instance the research conducted by Beltratti and Morana (2010) had pointed out that the main factors which influence the price of housing include variables like private consumption, rate of CPI inflation, interest rates of the economy, stock price and price of oil....
2 Pages (500 words) Research Proposal
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