Question

What current and upcoming events have and will likely affect the financial markets in the coming months? Provide reasons for your predictions and the anticipated effects on domestic and global securities markets. Please provide a one page analysis of different events!

Answer 1

Regional and global macroeconomic events do influence the global financial markets in in a positive or negative. when the expectations of the common are higher than the anticipated performance of the currency economy, the financial markets are in boom phase, while a single catastrophic even can bring down a domino effect collapsing the entire domestic and global market as has been witnessed in the GFC of 2K18

The following are the list of anticipated events which can bring about volatility In the global markets of the world

No	Events	Description
1	Changes in monetary policy and interest rates by the FED	The FED on every monetary policy meet changes the interest in order to stabilize the economy by applying either · Contractionary Monetary Policy · Expansionary policy In this times of the pandemic it is expected the rates cuts will continue in order to boost the hit economic sector which will improve the investor confidence improving the performance of the Global Equity markets
2	Earnings release by the companies	With the quarterly filings of the companies round the corner , the result of the previous quarter of majority of the companies is expected d to be underperforming affected by the lockdown in the major portions of the world. This will adversely affect the investor confidence
3	Worsening of international trade relations	The rise in the heated debate and worsening of the relations between the US- China , proves detrimental for the international business.
4	Rising volatility in the commodities	The changes on the Oil prices of BRENT and WTI causing the volatilities to rise in the domestic as well as the global commodities market, this in turn would be reflected in the Equity markets as well
5	Increasing Non performing assets in the banks and financial institutions	· The banking sector is the worst hit by the pandemic with the rise in Non performing assets and worsening of the asset quality . · Since this sector acts as the core of the financial system , its underperformance is going to affect the entire market
6	Imbalance in the sectoral performance in industrial performance	· The Pharma sector is Overperforming while the Auto and Real estate is underperforming. · This huge differences in the sectoral performance will affect the balance in the industry growth as well as the overall economy
7	Release of Unemployment data by World bank	· Unemployment data is expected to rise in the coming times as the companies are not in a position to hire more manpower due to worsening of their earnings quality

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