Current Financial Market

UNIVERSITY OF BRIDGEPORT

SUBJECT: FIN 505

MBA PROGRAM, SPRING 2016

TOPIC: FIRST MEASURE OF KNOWLEDGE

SUBMITTED TO:

PROF. DR. JANKOVIC

UNIVERSITY OF BRIDGEPORT

SUBMITTED BY:

MOHAMMAD HOSSAN

ID: 999940

MBA

UNIVERSITY OF BRIDGEPORT

Answer to question no 1:

Current Financial Market:

Today world financial condition is very unstable. The price of the oil had fallen to a 12 years low, the world stock market were lost there confidence among the investors and loosing there point everyday almost, the downturn in stock prices could be bad for the economy. The European central bank that is considering further action to boosts the euro zone’s struggling economy, and USA financial market are passing lowest interest rate, lots of European country like Germany and country like Japan had adopted negative bank interest rate.

It was the signal that the markets were desperate for after days of relentless bad news that stretched from the Arabian Gulf to Wall Street, from steelworks in south Wales to oil rigs in the North Sea, and which had begun with the bombshell announcement that China’s GDP had grown by only 6.9% in 2015, its lowest rate in 25 years, a very significant reduction in growth which will have a big impact on the rest of the world. There is a fear that we are walking into a global recession.

The International Monetary Fund’s latest global forecast downgrades the outlook for many emerging countries, notably Russia, Brazil and South Africa. For commodity producers – the likes of mining firms that extract iron ore and steel manufacturers – a global slowdown threatens their profitability. Many have seen their share prices plunge as analysts judge them to be overvalued. And where commodity producers lead, other businesses often follow.

The fund predicts the world economy will grow 3.4% this year, up from 3.1% in 2015. But we have to admitted there were four significant downside risks to the prediction: China; the impact of falling commodity prices on producers; the fragile state of some emerging market economies such as Russia and Brazil; and the possible disruption that could be caused by the US Federal Reserve raising interest rates when other central banks, including the European Central Bank and the Bank of Japan, are still providing additional stimulus.

Financial market Stakeholders adapted :

In the financial market the brokers, traders, investment bankers, corporations are main stakeholders of the financial market. Though financial environment is full of turbulence but this is good news for people with variable rate mortgages, it is an embarrassing admission that the economic recovery is built on anything but solid foundations. That is good news for brokers and traders the interest rate is now a days lowest in the history of interest. Thought the world stock market lose there point everyday that means the traders and brokers loss there client everyday. Lots of business organization in US and all over the world has already been closed for example Walmart stores. But still the new company are starting. For traders and brokers has good news the sanction are country like Cuba, Iran has little bit lift so they can enter there market.