Essay about The Financial Market
The financial market includes markets in which funds are transferred from people who have an excess of available funds to people who have a shortage.
• With weather being around freezing through parts of Florida analysts are worried that Orange Juice corp. will suffer. The orange juice future rose 10% in the past week. Traders are still anticipating a short production because of a disease and fruit sizes being smaller than usual.
• After the deep water horizon disaster, oil sales are finally returning to the Gulf. Deep-water wells are 25% more expensive today than in 2010 and can cost up to $300 million each but have the capacity of 900,000 barrels a day. Exxon Mobil and Chevron combined have more oil and gas output than California.
• With China’s surprise interest rate cut oil, gold and copper have held onto small gains. The surprise cut came after oil prices had fallen 30% since June placing worries that global production was outpacing demand. Oil was put just over $80 a barrel for the first time in a while.
• Regulators are examining bank activities with the commodities market and could bring new restrictions regarding trading and ownership of oil, metal and other raw materials.
• Three big banks owning commodities have exposed themselves as risks and manipulated prices in a way that would benefit them. They’re using its’ stockpile of aluminum to cause delays and create shortages and inflating the price.
• Commodities are a direct exposure through…