Article review; Finance
1. Halloween is about Trick or Treat, and there was a surprise treat by Japan last Friday. The Bank of Japan’s announcement of decision to expand their stimulus measures jolted the global markets, causing many ripples of price changes. Read the following Wall Street Journal articles cited below and answer the questions below.
• Bank of Japan Announces Massive Stimulus Move (Jacob Schlesinger, Eleanor Warnock and Takashi Nakamichi; October 31, 2014)
• Stocks Rally Across Globe (Tom Lauricella and Corrie Driebusch; October 31, 2014)
• Gold Plunges to 4-Year Low (Tatyana Shumsky; October 31, 2014)
(a) Was it good news or bad news for stocks in general? Why? How did the major stock indices like Dow, S&P 500, and Nasdaq respond to the announcement?
(b) How was the value of dollar affected and why?
(c) What did this mean for gold prices? Check the price impacts on the two gold mining stocks of Barrick and Newmont (using Yahoo Finance), and include findings there in your answer.