Financial Institutions and Markets FIN 304

Financial Institutions Financial Institutions and Marketsand Markets

FIN 304FIN 304

Dr. Andrew L. H. ParkesDr. Andrew L. H. Parkes

Day 3Day 3““How do financial markets work?”How do financial markets work?”

卜安吉卜安吉

December 8, 2009December 8, 2009 Financial Institutions & Markets, DaFinancial Institutions & Markets, Day 3y 3

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Other Financial MarketsOther Financial Markets

I want to introduce the Commodity I want to introduce the Commodity Markets briefly here. Markets briefly here.

Just what is traded in these markets Just what is traded in these markets andand

What are some of the indexes.What are some of the indexes.

Also I want you to know the Yield Also I want you to know the Yield Curve!Curve!


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Commodities Futures MktCommodities Futures Mkt

INDEX NAMEVALUE CHANGE OPEN HIGH LOW TIME

UBS BLOOMBERG CMCI 807.70 -37.37 830.07 830.16 805.92 12/05

S&P GSCI 318.00 -16.18 333.20 336.30 317.13 12/05

RJ/CRB Commodity 208.60 -9.39 217.79 217.99 208.58 12/05

Rogers Intl 2334.34 -98.00 2427.76 2433.43 2317.71 12/05

Brookshire Intl 291.63 1.34 NaN NaN NaN 11/21


44

Commodities Futures MktCommodities Futures Mkt

INDEX NAMEVALUE CHANGE OPEN HIGH LOW TIME

UBS BLOOMBERG CMCI 807.70 -37.37 830.07 830.16 805.92 12/05

S&P GSCI 318.00 -16.18 333.20 336.30 317.13 12/05

RJ/CRB Commodity 208.60 -9.39 217.79 217.99 208.58 12/05

Rogers Intl 2334.34 -98.00 2427.76 2433.43 2317.71 12/05

Brookshire Intl 291.63 1.34 NaN NaN NaN 11/21


55

Commodities Futures cont.Commodities Futures cont.

Energy

PRICE CHANGE %CHANGE TIME

BRENT CRUDE FUTR (USD/bbl.) 39.740 -2.540 -6.01 12/05

GAS OIL FUT (ICE) (USD/MT) 447.500 -42.250 -8.63 12/05

GASOLINE RBOB FUT (USd/gal.) 90.120 -6.830 -7.04 12/05

HEATING OIL FUTR (USd/gal.) 142.650 -8.260 -5.47 12/05

NATURAL GAS FUTR (USD/MMBtu) 5.742 -0.275 -4.57 12/05

WTI CRUDE FUTURE (USD/bbl.) 40.810 -2.860 -6.55 12/05


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Commodities Futures cont.Commodities Futures cont.Agriculture PRICE CHANGE %CHANGE TIME

COCOA FUTURE - LI (GBP/MT) 1635.000 -119.000 -6.78 12/05

COCOA FUTURE (USD/MT) 2141.000 -107.000 -4.76 12/05

COFFEE 'C' FUTURE (USd/lb.) 103.200 -2.950 -2.78 12/05

CORN FUTURE (USd/bu.) 309.250 -24.750 -7.41 12/05

COTTON NO.2 FUTR (USd/lb.) 41.370 -2.230 -5.11 12/05

FCOJ-A FUTURE (USd/lb.) 74.950 -1.250 -1.64 12/05

SOYBEAN FUTURE (USd/bu.) 783.500 -27.500 -3.39 12/05

SOYBEAN MEAL FUTR (USD/T.) 238.300 -7.200 -2.93 12/05

SOYBEAN OIL FUTR (USd/lb.) 28.550 -0.950 -3.22 12/05

SUGAR #11 (WORLD) (USd/lb.) 10.570 -0.230 -2.13 12/05

WHEAT FUTURE(CBT) (USd/bu.) 475.500 -10.500 -2.16 12/05

WHEAT FUTURE(KCB) (USd/bu.) 503.250 -9.750 -1.90 12/05

http://www.bloomberg.com/markets/commodities/cfutures.html


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Commodities Futures cont.Commodities Futures cont.

ALUMINUM FUTURE (USd/lb.) 69.100 -3.500 -4.82 12/05

COPPER FUTURE (USd/lb.) 137.350 -9.600 -6.53 12/05

GOLD 100 OZ FUTR (USD/t oz.) 752.200 -13.300 -1.74 12/05

SILVER FUTURE (USD/t oz.) 9.430 -0.090 -0.95 12/05

CATTLE FEEDER FUT (USd/lb.) 86.650 -1.450 -1.65 12/05

LEAN HOGS FUTURE (USd/lb.) 64.200 0.550 0.86 12/05

LIVE CATTLE FUTR (USd/lb.) 81.450 -1.625 -1.96 12/05


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Commodities Futures - OilCommodities Futures - Oil

http://online.wsj.com/mdc/public/page/mdc_commodities.html?mod=mdc_topnav_2_3000

Crude Oil – 1 year NYMEX or New York Mercantile Exchange, Sept. 8, 2009



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Commodities Futures - OilCommodities Futures - Oil


Crude Oil – 1 year NYMEX or New York Mercantile Exchange, Dec. 4, 2009


1010

Understanding Interest Rates Understanding Interest Rates Ch. 3Ch. 3

Ch. 3 – Ch. 3 – Notice CalculationsNotice Calculations

Discount BondDiscount Bond

Friday’s yield curve Friday’s yield curve => 1 yr ago=> 1 yr ago

What does this tell What does this tell you?you? Below today Below today

U. S. Treasury Yield Curve

http://www.bloomberg.com/markets/rates/index.html


1111

Discount Yields pp. 52 - 58Discount Yields pp. 52 - 58

Yield on a discount basis Yield on a discount basis - - Notice the Notice the CalculationsCalculations

Bond Quotes – p. 55 Bond Quotes – p. 55

(Wall St J.)(Wall St J.)

Treasury Bills – p. 57Treasury Bills – p. 57

Corporate Bonds – p. 58Corporate Bonds – p. 58

Real Interest Rate pp. 58 - 61Real Interest Rate pp. 58 - 61


1212

From Shanghai DailyFrom Shanghai Daily New yuan bonds set to debut in New yuan bonds set to debut in

Hong KongHong Kong– CHINA will soon issue its first yuan-CHINA will soon issue its first yuan-

backed sovereign bonds in the Hong backed sovereign bonds in the Hong Kong Special Administrative Region to Kong Special Administrative Region to build a market for the currency in the build a market for the currency in the global financial hub.global financial hub.

The Ministry of Finance will offer 6 billion The Ministry of Finance will offer 6 billion yuan (US$878 million) of the bonds on yuan (US$878 million) of the bonds on September 28 to retail and institutional September 28 to retail and institutional investors, the ministry said yesterday.investors, the ministry said yesterday.Created: 2009-9-9


1313

From Shanghai DailyFrom Shanghai Daily

New yuan bonds set to debut in Hong New yuan bonds set to debut in Hong KongKong

– Peng Wensheng, head of China research at Peng Wensheng, head of China research at Barclays Capital, said that while the amount is Barclays Capital, said that while the amount is not large, it is a significant development in the not large, it is a significant development in the internationalization of the yuan and for the internationalization of the yuan and for the development of the Hong Kong bond market. development of the Hong Kong bond market.

"The issue broke new ground in an effort to "The issue broke new ground in an effort to promote the domestic currency as an promote the domestic currency as an international currency," Peng said yesterday. international currency," Peng said yesterday.

http://www.shanghaidaily.com/sp/article/2009/200909/20090909/article_413253.htm

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Financial Institutions and Markets FIN 304