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Stocks market and currency market

Stocks market and currency market# Economics - 经济

b*n2002-08-31 07:08

1 楼

What's the relation between the stock market and the currency market, I mean
exchange rate? I think there is a principle in Econmomics, anybody give me
a pointer?

s*y2002-08-31 07:08

2 楼

I am curious at it too
Is the exchange rate the same?
i always think so, but not sure

【在 b****n 的大作中提到】

: What's the relation between the stock market and the currency market, I mean
: exchange rate? I think there is a principle in Econmomics, anybody give me
: a pointer?

c*i2002-08-31 07:08

3 楼

how does exchange rate play a role in stock market?
I never notice exchange rate in any stock market empirical paper.
Does it really matter in stock market?

【在 s******y 的大作中提到】

: I am curious at it too
: Is the exchange rate the same?
: i always think so, but not sure

q*i2002-08-31 07:08

4 楼

why doesn't it go the otherway? For example, the stock market drives
the currency market.
why empirical papers tend to be in one currency? few stocks are issued in
multiple currencies (ADR is one such exception). and most investors are
one-currency donominated: think about how many Chinese investing in
the British pound market, and how many of US in the Chinese market. Another
factor is that the stock market is considerably smaller than the government
market, especially for foreign investors so

【在 c*****i 的大作中提到】

: how does exchange rate play a role in stock market?
: I never notice exchange rate in any stock market empirical paper.
: Does it really matter in stock market?

c*i2002-08-31 07:08

5 楼

very interesting topic.
could you tell me the detailed process of foreign investors investing
US stock market? They impact the exchane rate directly? or through
currency market?
Maybe because few stocks are issued in multiple currencies, the impact is
limited?

【在 q**i 的大作中提到】

:
: why doesn't it go the otherway? For example, the stock market drives
: the currency market.
: why empirical papers tend to be in one currency? few stocks are issued in
: multiple currencies (ADR is one such exception). and most investors are
: one-currency donominated: think about how many Chinese investing in
: the British pound market, and how many of US in the Chinese market. Another
: factor is that the stock market is considerably smaller than the government
: market, especially for foreign investors so

q*i2002-08-31 07:08

6 楼

I am not entirely sure if there is one process that everyone follows. a
generic mechanism is to coonvert their local currency into US dollars
and execute the trade in US dollars. I don't have much stats on how
big this is but if I had to venture a guess, I would say that it
is minimum.
I think so.

【在 c*****i 的大作中提到】

: very interesting topic.
: could you tell me the detailed process of foreign investors investing
: US stock market? They impact the exchane rate directly? or through
: currency market?
: Maybe because few stocks are issued in multiple currencies, the impact is
: limited?

c*i2002-08-31 07:08

7 楼

ok, i never think of this before.
i am not able to catch the whole picture here, the relation between
the markets..always confusedd

【在 q**i 的大作中提到】

:
: I am not entirely sure if there is one process that everyone follows. a
: generic mechanism is to coonvert their local currency into US dollars
: and execute the trade in US dollars. I don't have much stats on how
: big this is but if I had to venture a guess, I would say that it
: is minimum.
: I think so.

q*i2002-08-31 07:08

8 楼

one of the difficult things in economic reserach is that it is hard
to figure out which factors are drivin gother factors. In this case,
the cause can be the result and vice versa.

【在 c*****i 的大作中提到】

: ok, i never think of this before.
: i am not able to catch the whole picture here, the relation between
: the markets..always confusedd

c*i2002-08-31 07:08

9 楼

//nod
only precedence can use to judge which is the cause (cause happens before
the results) but actually, always a circle in economics.
not like behavioral experimental research, they have good designs to tell
which is the drives.

【在 q**i 的大作中提到】

:
: one of the difficult things in economic reserach is that it is hard
: to figure out which factors are drivin gother factors. In this case,
: the cause can be the result and vice versa.

b*n2002-08-31 07:08

10 楼

Thanks for both of ur reply. Sorry I forget to follow up. It sounds these two
markets r very dynamic and complicated, just like chicken-and-egg things.
Actually I am more interested in the local currency (S$) against US$. I noti
ce S$ slides whenever the Singapore government-linked-corporation acquires
some big oversea companies. The selling of S$ in exchange of US$ for the acquis
ition pushes the depreciation. But S$ recently rebounds back due to the weak
ness of US$.
I have a hunch that S$ has

【在 q**i 的大作中提到】

:
: one of the difficult things in economic reserach is that it is hard
: to figure out which factors are drivin gother factors. In this case,
: the cause can be the result and vice versa.