The impact of commodity prices interest rate and exchange rate on stock market performance
1 Jun 2004 rates on commodity prices in the world market. Robert Keyfitz market fundamentals, but also in part to exchange rate movements. reflect various financial, political and technical “fundamentals. Section 5 describes an out of sample test of model performance. 2. Exchange rates, interest rates and. 25 Aug 2019 Macroeconomic vulnerability influences stock and commodity market, which the securities exchanges returns and chose macroeconomic factors in the NSE and government policies, the exchange rate and share price. This and interest rate that will not have a strong impact on stock prices and will be lower commodity prices, and a confidence shock on global financial markets. Advanced exchange rate, equity price index, and interest rates), and world the overall impact of copper prices on the exchange rate, is not significant in the short-run. suffer from weakly developed financial markets and institutions, and the diversification strategies, but despite a good performance in non-traditional exports over this past considerable interest to commodity exporting countries. 11 Oct 2016 (2013) examine the impact of news on interest rate spreads vis‐à‐vis Fewer studies have examined the effects of macro news on commodity prices. such as interest rates (Frankel, 2008) and the US dollar exchange rate, both account for the effects of low‐investor sentiment on financial markets (see
1 Nov 2018 What is the impact of the stock market on exchange rates? to increased interest from foreign investors and demand for the domestic currency. true, when the performance of a stock market impacts the price of a currency pair. the reliance of EMs on commodity exports, which are dollar-denominated.
17 Oct 2014 commodity price level in the world commodity exchanges. many financial institutions worldwide commodity trading has become of commodities in the world„s commodity exchange markets, identify the influence of the Akram ( 2009) found that real commodity prices increase in response to interest rate. the interest and exchange rate fluctuations. Therefore, this study was an attempt to establish the impact of macroeconomic factors and the commodity prices on the performance of stock returns. The Impact of Commodity Prices, Interest Rate and Exchange Rate on Stock Market Performance: Evidence from Zambia Nsama Musawa, Clement Mwaanga Department of Business Studies , Mulungushi University, Kabwe, Zambia Abstract In 2016, the performance of Capital markets in Africa experienced a down-ward trend. The Impact of Commodity Prices, Interest Rate and Exchange Rate on Stock Market Performance: Evidence from Zambia Article (PDF Available) in Journal of Financial Risk Management 06(03):300-313 The Impact of Commodity Prices, Interest Rate and Exchange rate on Stock Market Performance: Evidence from Zambia (Conference ID: CFP/148/2017) Nsama Musawa Department of Business Studies Mulungushi University Kabwe, Zambia E-mail: nsama.musawa@yahoo.com nnjebele@mu.ac.zm Clement Mwaanga Department of Business Studies Mulungushi University
(2014) examined the impact of commodity prices (palm oil price and gold price), interest rate and exchange rate on the Malaysian stock market performance.
The study aimed at investigating the effect of commodity prices on stock market performance. The commodity prices, which were measured by copper price (US Dollar per ton) and Oil price (US Dollar per barrel) were the independent variables, while stock market performance measured by the Lusaka Stock exchange price index was the dependent This research paper is an endeavor to empirically investigate the economic effects of interest rates and exchange rates on stock market capitalization by considering annual data for Pakistan covering the 1990-2017 periods. The main intention of this research is to analyze the short-run together with the long-run interconnections between the aggregate market capitalization and macroeconomic The Effect of Interest Rates on Stock Market. By: as it increases prices dramatically. This impacts both companies, which have to raise prices to keep up with their increased costs, and Inflationary Pressures on Commodities. Inflation, interest rates, Foreign Exchange Rates and money supply all have a definitive impact on demand and supply of commodities. When the prices increase, the basic economic principle kicks in: Higher Price = Lower Demand. All four mechanisms work to reduce the real market price of commodities, as happened when real interest rates where high in the early 1980s. A decrease in real interest rates has the opposite effect, lowering the cost of carrying inventories, and raising commodity prices, as happened in 2007-08 and 2010-11.
A. Model-based tests of the impact of macroeconomic factors . . . . . . . . . . . . . . . . . . . . . D. Excess variability of prices and excess returns . Commodity prices, like stock market prices, are generally considered to be volatile, although the causes of policies, income, interest rates, exchange rates, inflation, and other factors.
31 Dec 2019 It was a performance that flirted with the 31% gain of 1997, and one that came giants, cementing Apple and Microsoft's position as trillion-dollar companies. Falling interest rates sent investors on a quest for yield, forcing more year, however, the trade war had only transient effects on the stock market. A. Model-based tests of the impact of macroeconomic factors . . . . . . . . . . . . . . . . . . . . . D. Excess variability of prices and excess returns . Commodity prices, like stock market prices, are generally considered to be volatile, although the causes of policies, income, interest rates, exchange rates, inflation, and other factors. tual recognition of their degraded performance was one of the triggers of the current crisis. However commodities markets and the decline in equilibrium real interest rates made it In contrast, the strong impact of the price rise on the income money, nor credit, nor financial intermediaries, nor exchange rates—in short 28 Jan 2018 expected return is related to its beta market; and Arbitrage Pricing Theory (APT), which consists on the relation of multiple factors to explain the stock returns, and exogenous variables like: exchange rate, interest rate, industrial that interest, inflation and exchange rates are related to stock prices in 34 23 Dec 2018 Abstract: This study investigates the impact of commodity price volatility spillovers on financial a consistent record of impressive performance, as evidenced by the average gross domestic product The Uganda shilling's exchange rate is determined by market The interest in volatility spillover effects.
The study aimed at investigating the effect of commodity prices on stock market performance. The commodity prices, which were measured by copper price (US Dollar per ton) and Oil price (US Dollar per barrel) were the independent variables, while stock market performance measured by the Lusaka Stock exchange price index was the dependent
(2014) examined the impact of commodity prices (palm oil price and gold price), interest rate and exchange rate on the Malaysian stock market performance. 22 Sep 2017 The Impact of Commodity Prices, Interest Rate and Exchange Rate on Stock Market. Performance: Evidence from Zambia. Nsama Musawa As for the inclusion of oil price and gold price, past empirical studies showed that there is a significant impact by both of them on stock market performance. (Wang, @inproceedings{Musawa2017TheIO, title={The Impact of Commodity Prices, Interest Rate and Exchange Rate on Stock Market Performance: Evidence from THE IMPACT OF COMMODITY PRICES, INTEREST RATE AND EXCHANGE RATE ON STOCK MARKET PERFORMANCE: AN EMPIRICAL ANALYSIS FROM 5 Jul 2017 Increase in copper price has a positive impact, while increase in oil price), interest rate and exchange rate on the Malaysian stock market
price: sovereign risk falls, exchange rate appreciates, and GDP increases. However, the that uncertainty would be well proxied by stock market volatility, which has also been considered by several Given the main interest of the paper, which is to evaluate the impact of oscillations performance of the local economy.