Fundamental analysis
The rate of exchange is influenced with the factors reflecting a condition of economy of the given country: Parameters of economic growth (national product, volumes of industrial production, etc.); Condition of trading balance, degree of dependence on external sources of raw material Growth of monetary weight in a home market Rate of inflation and inflationary expectations Level of the interest rate Solvency of the country and trust to national currency in the world market Speculative operations in the currency market Degree of development of other sectors of the world financial market, for example a securities market competing to the currency market.Money in another’s countryInterest rates differential (a difference of interest rates)JPI – 0,5 % GBP – 6.00 %In the form of securities:T-bills (exchequer papers)USA – Bonds UK – Gilts Germany – Bunds Japan – JGB USA – deficiency of the budget negativeJapan – deficiency of the budget positiveThus Japan places the basic means in bonds USA about 60 % of volume of the market.The central bank of Russia places about 80 % of the reserve means also in bonds USA.
Share indexes DJIA–USA Nikkey – 225 - JapanFTSE – 100 – UK CAC – 40 - FranceDAX – 30 – Germany Hang Seng – HK (Gong )
Dow-Johns's index (DJI)
There are Dow-Johns's 4 indexes.Dow-Johns's industrial index (The Dow Jones Industrial Average - DJIA) - a simple average indice of movement of share prices of 30 largest industrial corporations. Dow-Johns's industrial index is the oldest and the most widespread among all parameters of the share market. Its structure is not constant: its components can change depending on positions of the largest industrial corporations in economy of the USA and in the market, however in modern conditions such cases are rare enough. Basically on its components it is necessary from 15 up to 20 % of market cost of the actions quoted at the New York stock exchange. This index is charged by addition of the prices of the actions included in it and division of the received sum on certain denominators (which it is corrected on size of crushing of actions and dividends in the form of the actions making over 10 % of market cost of releases, and also on replacement of components and merges and absorption). Dow-Johns's index is quoted in items. From recent time for it there were future contracts in Chicago.Dow-Johns's transport index (The Dow Jones Transportation Average - DJTA) - an average indice describing movement of the prices for the actions of 20 transport corporations (airlines, the railway and road companies).Dow-Johns's municipal index (The Dow Jones Utility Average - DJUA) - an average indice of movement of share prices of 15 companies, an engaged gas - and electrosupply.Dow-Johns's compound index (The Dow Jones Composite Average - DJCA) - a parameter made on the basis of industrial, transport and municipal indexes of Dow-Johns.
Index (S&P) This index is published by the independent company " Standard an Poor ". It is made in two variants - under actions of 500 corporations and under actions of 100 corporations. S&P - 500 represents the index of actions of 500 corporations weighed at market cost which are presented in it in a following proportion: 400 industrial corporations, 20 transport, 40 financial and 40 municipal companies. Actions of the companies registered at the New York stock exchange are included in it basically, however there are also actions of some corporations which are quoted at the American stock exchange and in outside a turn. The index represents about 80 % of market cost of all releases quoted at the New York stock exchange. This index more complex in comparison with Dow-Johns's index, but it is considered also more exact by virtue of that in it actions of greater number of corporations are presented and actions of each corporation are weighed on size of cost of all actions which are being hands of shareholders. Futures and options on it are on sale on the Chicago commodity exchange.S&P - 100. The index is estimated on the same basis, as an index under actions of 500 corporations, but consists of actions of corporations on which exists the registered options at the Chicago stock exchange of options. Basically it is industrial corporations.
Index of the New York stock exchange (NYSE Index) The given index represents the parameter of movement of share prices of all corporations which have registered the papers at the New York stock exchange weighed at market cost, that is, as a matter of fact, it is a parameter represents the average price for the action on all companies at the New York stock exchange, weighed on market cost of actions of each corporation (with corresponding updatings under factors of crushing of actions, merges and absorption). Unlike Dow-Johns's index which is expressed in items, index NYSE is expressed in dollars. Operations with options on this index are carried out at the Most New York stock exchange. Operations with future contracts are carried out at the New York stock exchange of futures which is division of the New York stock exchange.
Indexes of the American stock exchange (AMEX) The American stock exchange publishes two basic indexes which are estimated on absolutely different basis. The basic market index of the American stock exchange (AMEX Major Market Index) is a simple average indice of movement of the prices of 20 leading industrial corporations. It has been conceived by the American stock exchange as an original substitute of an industrial index of Dow-Johns. Though it pays off and published by the American stock exchange, its structure includes actions of the corporations registered at the New York stock exchange. It is remarkable, that 15 from them are also components of an industrial index of Dow-Johns. Operations with futures on this index are carried out at the Chicago trading stock exchange.The index of market cost of the American stock exchange (AMEX Market Value Index) is estimated on essentially other basis: it is the parameter weighed at market cost of all let out actions of those corporations which are included in it as components. For the first time it has been published in September, 1973. It includes as components more than 800 share issues representing securities of corporations of all large branch groups, registered on the American stock exchange, including, besides ordinary actions, the American depositary certificates and subscription certificates. From the technical point of view it is unique by virtue of that at its calculation is supposed, that dividends in the form of the cash, paid on actions entering into its structure, reinvesting, and they are reflected in this basis in an index. Options on this index are quoted at the American stock exchange.
Index (NASDAQ) The national association of share dealers estimates a lot of the indexes representing as outside a turn as a whole, and papers of corporations of separate branches. The core is index NASDAQ in which are included as components of the action about 3500 corporations (except for quoted at stock exchanges). This index is a parameter weighed at market cost of its components. For the first time it has been calculated in February, 1971.Operations with options and futures on this index are carried out on the Chicago commodity exchange.Falling of share indexes leads to falling of national currency
The central banks The Central Bank watches a rate of inflation in the country, a rate of national currency and tries to adjust them by means of three basic interest rates:Discount rate – Discount rate. The Interest rate, under which Central Bank finances commercial banks.USA–6,50 %Switz.–3,75 %UK – 6,00 %EU - 3,75 %Japan – 0,5 % The American and English rates high enough, therefore to them foreign investors show the big interest.The rate – Repo rate. The Interest rate applied by the Central Bank in operations with commercial banks and other credit institutes at purchase (account) of the state exchequer obligations. The Central Bank this most carries out regulation of the market of loan capitals. Fed Funds (rate Repo USA)The pawn rate - Lombard rate. The Interest rate applied by the Central Bank on the security of the real estate, gold and exchange values at delivery of credits to commercial banks.At reduction of interest rates business activity raises and inflation increases. Decrease in interest rates conducts to reduction in price of national currency. Increase of interest rates leads to decrease in business activity, decrease in inflation and rise in price of national currency. In modern conditions a method of influence on a rate of national currency practice of purchase and sale by the central banks of the foreign currency, named continues to remain currency intervention. The central banks:USA:FED – Federal Reseve System;The decision on change of rates is accepted FOMC–Federal Open Market Committee which session passes time in six weeks two days: Monday and Tuesday. Chairman of board - Alan Greenspan The rate on federal funds (refinancing) = 6.50 % The discount rate = 6,0 %.Germany: Bundesbank (BBK, Buba) – the Central Bank of GermanyBuba cooncil meeting - session Buba – each 2 weeks on Thursdays;Chairman of board – Ernst Welteke Great Britain: Bank of England – BOE;Session once a monthChairman of board – Eddie GeorgeDiscount rates = 6.00 %Switzerland: Swiss National Bank (SNB);Session – every Thursday;Chairman of board – Hans MeyerRate LIBOR = 3.25 %Japan: Bank of Japan (BOJ);Session 24 hours per day;Chairman of board – Masaru HayamiDiscount rates = 0.50 %EU: Europian Central Bank (ECB);Chairman of board – Willem F. Duisenberg, President of the ECB Discount rates = 3.75 %. Alongside with the central banks broker firms which, working with concrete bank, represent itself as intermediaries between the seller and the buyer of currency function in the currency market. Through the broker it is possible to carry anonymity to the certain advantages of work at fulfilment of transactions, a continuity of process of the quotation, and an opportunity to offer own prices.Last decades in the currency market there was a change of character of trade to transferring accent on change of promptness of trade: significant growth of transactions which execution occurs in the future was outlined. All this has led, on the one hand, to the raised susceptibility of the currency market to tactical changes and for substantial growth of currency fluctuations, and on the other hand, to growth of opportunities for highly effective investment. At many stock exchanges a wide circulation alongside with operations on purchase and sale of currency operations with derivative financial tools - have received currency both financial futures and options. As examples of such stock exchanges in already for a long time the recognized world centers of trade in currency can serve the London International Stock exchange of Financial Futures (London International Financial Futures Exchange - LIFFE), European Options the Stock exchange in Amsterdam (European Options Exchange - EOE), the German Urgent Stock exchange in Frankfurt (Deutsche Terminboerse - DTB), the Singapore Stock exchange (Singapore International Monetary Exchange - SIMEX) (Sydney Futures Exchange - SFE) and the Stock exchange of Urgent Trade in Sydney.
Share indexes DJIA–USA Nikkey – 225 - JapanFTSE – 100 – UK CAC – 40 - FranceDAX – 30 – Germany Hang Seng – HK (Gong )
Dow-Johns's index (DJI)
There are Dow-Johns's 4 indexes.Dow-Johns's industrial index (The Dow Jones Industrial Average - DJIA) - a simple average indice of movement of share prices of 30 largest industrial corporations. Dow-Johns's industrial index is the oldest and the most widespread among all parameters of the share market. Its structure is not constant: its components can change depending on positions of the largest industrial corporations in economy of the USA and in the market, however in modern conditions such cases are rare enough. Basically on its components it is necessary from 15 up to 20 % of market cost of the actions quoted at the New York stock exchange. This index is charged by addition of the prices of the actions included in it and division of the received sum on certain denominators (which it is corrected on size of crushing of actions and dividends in the form of the actions making over 10 % of market cost of releases, and also on replacement of components and merges and absorption). Dow-Johns's index is quoted in items. From recent time for it there were future contracts in Chicago.Dow-Johns's transport index (The Dow Jones Transportation Average - DJTA) - an average indice describing movement of the prices for the actions of 20 transport corporations (airlines, the railway and road companies).Dow-Johns's municipal index (The Dow Jones Utility Average - DJUA) - an average indice of movement of share prices of 15 companies, an engaged gas - and electrosupply.Dow-Johns's compound index (The Dow Jones Composite Average - DJCA) - a parameter made on the basis of industrial, transport and municipal indexes of Dow-Johns.
Index (S&P) This index is published by the independent company " Standard an Poor ". It is made in two variants - under actions of 500 corporations and under actions of 100 corporations. S&P - 500 represents the index of actions of 500 corporations weighed at market cost which are presented in it in a following proportion: 400 industrial corporations, 20 transport, 40 financial and 40 municipal companies. Actions of the companies registered at the New York stock exchange are included in it basically, however there are also actions of some corporations which are quoted at the American stock exchange and in outside a turn. The index represents about 80 % of market cost of all releases quoted at the New York stock exchange. This index more complex in comparison with Dow-Johns's index, but it is considered also more exact by virtue of that in it actions of greater number of corporations are presented and actions of each corporation are weighed on size of cost of all actions which are being hands of shareholders. Futures and options on it are on sale on the Chicago commodity exchange.S&P - 100. The index is estimated on the same basis, as an index under actions of 500 corporations, but consists of actions of corporations on which exists the registered options at the Chicago stock exchange of options. Basically it is industrial corporations.
Index of the New York stock exchange (NYSE Index) The given index represents the parameter of movement of share prices of all corporations which have registered the papers at the New York stock exchange weighed at market cost, that is, as a matter of fact, it is a parameter represents the average price for the action on all companies at the New York stock exchange, weighed on market cost of actions of each corporation (with corresponding updatings under factors of crushing of actions, merges and absorption). Unlike Dow-Johns's index which is expressed in items, index NYSE is expressed in dollars. Operations with options on this index are carried out at the Most New York stock exchange. Operations with future contracts are carried out at the New York stock exchange of futures which is division of the New York stock exchange.
Indexes of the American stock exchange (AMEX) The American stock exchange publishes two basic indexes which are estimated on absolutely different basis. The basic market index of the American stock exchange (AMEX Major Market Index) is a simple average indice of movement of the prices of 20 leading industrial corporations. It has been conceived by the American stock exchange as an original substitute of an industrial index of Dow-Johns. Though it pays off and published by the American stock exchange, its structure includes actions of the corporations registered at the New York stock exchange. It is remarkable, that 15 from them are also components of an industrial index of Dow-Johns. Operations with futures on this index are carried out at the Chicago trading stock exchange.The index of market cost of the American stock exchange (AMEX Market Value Index) is estimated on essentially other basis: it is the parameter weighed at market cost of all let out actions of those corporations which are included in it as components. For the first time it has been published in September, 1973. It includes as components more than 800 share issues representing securities of corporations of all large branch groups, registered on the American stock exchange, including, besides ordinary actions, the American depositary certificates and subscription certificates. From the technical point of view it is unique by virtue of that at its calculation is supposed, that dividends in the form of the cash, paid on actions entering into its structure, reinvesting, and they are reflected in this basis in an index. Options on this index are quoted at the American stock exchange.
Index (NASDAQ) The national association of share dealers estimates a lot of the indexes representing as outside a turn as a whole, and papers of corporations of separate branches. The core is index NASDAQ in which are included as components of the action about 3500 corporations (except for quoted at stock exchanges). This index is a parameter weighed at market cost of its components. For the first time it has been calculated in February, 1971.Operations with options and futures on this index are carried out on the Chicago commodity exchange.Falling of share indexes leads to falling of national currency
The central banks The Central Bank watches a rate of inflation in the country, a rate of national currency and tries to adjust them by means of three basic interest rates:Discount rate – Discount rate. The Interest rate, under which Central Bank finances commercial banks.USA–6,50 %Switz.–3,75 %UK – 6,00 %EU - 3,75 %Japan – 0,5 % The American and English rates high enough, therefore to them foreign investors show the big interest.The rate – Repo rate. The Interest rate applied by the Central Bank in operations with commercial banks and other credit institutes at purchase (account) of the state exchequer obligations. The Central Bank this most carries out regulation of the market of loan capitals. Fed Funds (rate Repo USA)The pawn rate - Lombard rate. The Interest rate applied by the Central Bank on the security of the real estate, gold and exchange values at delivery of credits to commercial banks.At reduction of interest rates business activity raises and inflation increases. Decrease in interest rates conducts to reduction in price of national currency. Increase of interest rates leads to decrease in business activity, decrease in inflation and rise in price of national currency. In modern conditions a method of influence on a rate of national currency practice of purchase and sale by the central banks of the foreign currency, named continues to remain currency intervention. The central banks:USA:FED – Federal Reseve System;The decision on change of rates is accepted FOMC–Federal Open Market Committee which session passes time in six weeks two days: Monday and Tuesday. Chairman of board - Alan Greenspan The rate on federal funds (refinancing) = 6.50 % The discount rate = 6,0 %.Germany: Bundesbank (BBK, Buba) – the Central Bank of GermanyBuba cooncil meeting - session Buba – each 2 weeks on Thursdays;Chairman of board – Ernst Welteke Great Britain: Bank of England – BOE;Session once a monthChairman of board – Eddie GeorgeDiscount rates = 6.00 %Switzerland: Swiss National Bank (SNB);Session – every Thursday;Chairman of board – Hans MeyerRate LIBOR = 3.25 %Japan: Bank of Japan (BOJ);Session 24 hours per day;Chairman of board – Masaru HayamiDiscount rates = 0.50 %EU: Europian Central Bank (ECB);Chairman of board – Willem F. Duisenberg, President of the ECB Discount rates = 3.75 %. Alongside with the central banks broker firms which, working with concrete bank, represent itself as intermediaries between the seller and the buyer of currency function in the currency market. Through the broker it is possible to carry anonymity to the certain advantages of work at fulfilment of transactions, a continuity of process of the quotation, and an opportunity to offer own prices.Last decades in the currency market there was a change of character of trade to transferring accent on change of promptness of trade: significant growth of transactions which execution occurs in the future was outlined. All this has led, on the one hand, to the raised susceptibility of the currency market to tactical changes and for substantial growth of currency fluctuations, and on the other hand, to growth of opportunities for highly effective investment. At many stock exchanges a wide circulation alongside with operations on purchase and sale of currency operations with derivative financial tools - have received currency both financial futures and options. As examples of such stock exchanges in already for a long time the recognized world centers of trade in currency can serve the London International Stock exchange of Financial Futures (London International Financial Futures Exchange - LIFFE), European Options the Stock exchange in Amsterdam (European Options Exchange - EOE), the German Urgent Stock exchange in Frankfurt (Deutsche Terminboerse - DTB), the Singapore Stock exchange (Singapore International Monetary Exchange - SIMEX) (Sydney Futures Exchange - SFE) and the Stock exchange of Urgent Trade in Sydney.
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