You are on page 1of 2

Article -1: [Richard Frost] World's Second-Largest Stock Market Is Getting

Interesting Again, Bloomberg Markets, 28AGU17


Since end of year 2015, the Shanghai Composite Index began moving upward and during
mid-year it reached to highest level whereas China yuan has jumped more than 11 percent.
According to Chinese financial gurus, the increase in the Chinese Yaun, the
outperformance in offshore shocks and receding angst over Beijings deleveraging
drive have encouraged the local investor to return their mainland markets where volatility
level is very low and still decreasing.
The bridesmaids for much of this year as surging Hong Kong-listed stocks stole the glory,
and according to the analyst mainland Chinese equities have started to pick up again in
near future.

Article -2: [China] Stock market slides again; worst two-week start to a year,
Aljazeera American News, 15JAN16
Market has been on a decline since the start of the year due to alarm over a slowdown in
China and plunging oil prices.
According to Dan Farley, regional investment strategist, due to prices fluctuation of oil,
the Dow and S&P 500 have now fallen about 8 percent this year, while the Nasdaq is off
about 10 percent.
Crude oil has dropped below $30 a barrel from a high of over $100 during the summer of
2014, eviscerating energy company profits falling $2.19, or 12 percent, to $16.10.
They expected oil prices would stabilize. After a market correction in August, few forecast
it would happen again so soon. And the Federal Reserve's move in December to raise
interest rates for the first time in nearly 10 years signaled to many that the U.S. economy
was healthy.

Correlation between Articles and Finance Course -3100:

The above Article No. 1 & 2 are enlightening the financial, economic and social impact on the
stock market and shows market sensitivity of stock in china and related region such as Hong Kong.
Moreover, Article No. 2, also emphasis the impact of natural resource in the development of stock
markets. As the Finance Course 3100 guide these phenomena. When the price of the natural
reserves decreased ultimately the financial crises happened in the economy; and resultantly, the
stock market affected. Further, the price fluctuation in the natural resource also reason of currency
devaluation. Because, the strong currency mean falls in the price of the equity and vice versa.
Hence, by keeping in view of the market position, the FIN 3100 supports in realization of the
essentials to build these theories and models pertinent to financial markets and emphases on natural
resources and their impact on economy. Further, the Conceptions concerning interest rates,
monetary policy, the money supply, and the Federal Reserve provide are included in this course.
Moreover, it also helps us in the application of theories regarding debt, equity, and derivatives
markets.

You might also like