Understanding Capital Markets: A Deep Dive into Financial Instruments and Institutions

Analyze the commodity:Sugar is a type of agricultural product that is grown rather than mined.Variables that can influence in the Supply and demand: sugar is produced in many countries, and its price is influenced by global supply and demand. When there is a surplus of sugar, the price tend to decline, and where there is a shortage the price tends to increase.Weather: Weather conditions such as floods, hurricanes, can affect the crop’s yield and quality, which in turn can affect the price.Government Policies: in some countries governments set price controls, subsidies, and quotas on sugar and other things, it can affect the price of sugar in global markets.Currency Exchange rates: fluctuations in Applications:is primarily used as a sweetener in food and beverages, it is also used in the production of ethanol.Markets: Sugar is traded on a number of commodity exchanges around the world, including the intercontinental exchange (ICE) the new york mercantile exchange (NYMEX) and the Chicago Mercantile Exchange (CME)Expectations in its evolution: The price of sugar is subject to volatility, the evolution of sugar depends on some factors such as supply and demand, weather conditions, government policies and currency exchange. For example, a growing global demand for sugar products could lead to increased demand for sugar, while advances in synthetic sugar for example, could reduce demand for natural sugar.The sugar market in my opinion is likely to continue to be influenced by a wide range of economic, environmental and geopolitical factors, making it challenging to predict with certainty how it will evolve over time.

A commodity is a basic good used in commerce that is interchangeable with other commodities of the same type.Its price is determined as a function of its market as a whole.Types:Agricultural, Participants in the market: farmer or producers, processors or cattle ranchers, exporters, domestic importer, managers of commodity risk… These include raw or unprocessed products that are derived from plants or animals: what, corn, coffee, sugar…Energy: Crude Oil Derivatives, traded in Nymex, ICE, SGX, DME, TOCOM. These include resources that are used to generate energy: crude oil, natural gas, gasoline…Metals: the London metal exchange, it is a futures and forwards exchange with the world’s largest market in standardized forward contracts, future construct and options on base metals. These include precious and industrial metals that are mined from the earth: gold, silver, platinum, copper…

The most important banks in the world are:The European central Swiss National Banks (SNB), Switzerland is a very export dependent, it also does not have an interest seeing its currency become too strongBank of England (BoE), mainstains monetary and financial stability. Keep prices stable and maintain confidence in the currency. They have inflation target of 2%.U.S Federal Reserve System (The Fed): the most influential central bank in the world.Reserve Bank of Australia (RBA): Ensures stability of currency, maintenance of full employment and economic prosperity and welfare of the people of Australia. Inflation target of 2-3% Reserve Bank of New Zealand (RBNZ): maintain price stability and avoid instability in output, interest rates and exchange rates. Inflation target 1.5%.Bank of Canada (BoC): maintains integrity and value of the currency. Has an inflation of 1-3% and it has done a good job of keeping inflation.The people’s bank of China (PBC): responsible fro carrying out monetary policy and regulation of financial institutions in mainland China, as determined by People’s Bank Law and commercial Bank Law.Bank of Japan (BoJ): maintains price stability to ensure stability. Its top focus is inflation.

It is the Intercontinental Exchange, is a leading operator of global exchanges and clearinghouses. IT operates a network of regulated exchanges and marketplaces that offer trading and clearing services for a wide range of financial and commodity markets, including energy, agriculture, metals, foreign exchange and equity derivatives.The capital markets are the most followed markets, their daily movements are analyzed as proxies for the general economic condition of the world markets.In these markets, long-term securities such as stock, bonds and other financial instruments are traded.The institutions that operate in capital markets are stock exchange, commercial banks and all types of corporations, non-bank institutions like insurance companies and mortgage banks.The main components are:
Stock Market, Bond Market, Derivatives Market, Commodities
Market and Foreign exchange market.

A central bank is an institution that manages a state’s currency, money supply and interest rate. In the most developed nations, central banks are institutionally designed to be independent from political interference.
This financial institution is responsible for regulating and supervising a country’s monetary system, as well as implementing monetary policies aimed at achieving certain economic objectives. It also provides services to other banks and financial institutions in the country. The main functions of central banks are:Control of the nation’s money supply, with active duties such as managing interest rates, setting the reserve requirement and acting as a lender of last resort to the banking sector during times of bank insolvency or financial crisis.To oversee the commercial banking system of their respective countries, intended to prevent bank runs and to reduce the risk that commercial banks and other financial institutions engage in reckless or fraudulent behavior.Processes a monopoly on increasing the monetary base in the state and usually also prints the national currency which usually serves as the state’s legal tender.

CNMV is: Comisión Nacional del Mercado de Valores.The aim is to ensure the transparency of the Spanish securities market and the correct formation of prices as well as the protection of investors.It was created in 1988 and operates under the auspices of the Spanish Ministry of Economy and Business.This is also the body responsible for the supervision and inspection of Spanish securities markets and the activity of all those involved in them. It was created by Securities markets and the activity of all those involved in them. It was created by securities market law, which represented a thorough reform of this segment of the Spanish financial system and since then the regime has been updated to the evolution of financial markets and to introduce new measures to protect investors.The CNMV plays an important role in maintaining the integrity and stability of the Spanish securities markets, and in promoting investor protection and confidence.