Assignment - Research Report Financial Markets

Assignment Help Financial Accounting

Reference no: EM132553001

Assignment - Research Report Financial Markets

Report Title - Capital Market and Information Efficiency - How Information About the US Share Market Triggers Change in the Australian Share Market

The purpose of this assignment is to develop your ability to research issues impacting the sustainability and efficiencies of the financial markets and make connections between the concepts and actual events in the real world.

The rationale for the format of this assignment is based on the benefits of research and critical thinking skills as valuable career attributes. Further, by making connections to the real-world you will benefit personally by being better informed about matters influencing future investment and business decisions.

Learning Outcomes Assessed - Research issues impacting on investment decisions and the sustainability of financial markets.

Background - The concept of Capital Market Efficiency was introduced in Week 1. In addition, Chapter 1 of your prescribed text describes the impact of information efficiency on capital market efficiency. For instance, as shown in the 5 news broadcasts below (or see the attached pdf files with assignment), information about real-world events can trigger changes to share prices in one market, such as the US share market and that change will the influence a shift in the share prices of another market, such as the Australian share market.

1. The Australian share market on Monday closed higher after regional markets lifted on jobs data positivity out of the US and Australian markets. In the same time in the US on Monday, the S&P 500 and the Dow Jones index fell as worries about the metal tariffs signed into law last week by President Donald Trump weighed on industrial stocks. See the pdf file 13 March 2018, Yahoo news.

2. Australian stocks are expected to open lower after US stocks fell amid uncertainty sparked by the sacking of Rex Tillerson as US secretary of state. See pdf file 14 March 2018, Yahoo news.

3. The Australian share market has lost ground for a third straight session, weighed down by falls by the banks and concerns about a trade war. Donald Trump considered fresh tariffs on goods from China, reviving anxiety of a global trade war. See pdf file 15 March 2018, Yahoo news.

4. The Australian share market is expected to open lower after US stocks suffered heavy falls during the offshore session, driven by losses in technology stocks. In the US, the major stock market indexes were down by more than one per cent, after Facebook led a sell-off in technology stocks on reports that the social media company's user information was misused. See pdf file 20 March 2018, Yahoo news.

5. Australian shares have opened comfortably higher after a strong surge in oil prices gave energy stocks and the major US stocks indexes a boost on Wednesday, with mining and energy stocks particularly strong. See pdf file 21 March 2018, Yahoo news.

Assignment Task - Assume the role of a financial analyst and prepare a report [Word Count: Maximum 2,000 words] which:

a) Explains capital market and informational efficiency

b) Describes how/why a shift in the Australian share prices is triggered by information about political and economic events in the US,

c) Provides examples for different markets around the global, like those above, to illustrate and support your explanations.

d) Presents an argument as to whether or not the Australian share market has information efficiency.

To illustrate and support each element of the report you are required to use no less than 4 scholarly articles.

You are also required to explore a range of other formats, such as online news broadcasts, newspapers, financial magazines and various financial market websites to enhance the quality and richness of your arguments, descriptions and explanations.

The report must be confined to: Upper word limit of 2,000 words [excluding references], 8 pages of text in report format, plus Cover page and Table of Contents, 1 - 2 pages for references (use only APA referencing) and 1-2 pages for appendices.

Attachment:- Research Report Financial Markets Assignment Files.rar

Reference no: EM132553001

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