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The Australian Securities Exchange (ASX) is one of the largest global securities exchanges by value, with a total market capitalisation of about A$16 billion. It is also the largest market for interest rate derivatives in Asia and among the top five exchanges globally for raising capital. The ASX, which is based in Sydney, was the first major financial market open every day. The Australian Stock Exchange was formed on the…
What Is An ETF? Exchange-traded funds (ETFs) are investment vehicles similar to mutual funds that hold a portfolio of securities, such as stocks, bonds, currencies, commodities and other assets. ETFs differ from mutual funds in that they are often designed to match the performance of a specific index and are therefore usually passive, while mutual funds are typically actively managed in order to try to outperform a specific index. ETFs…
What Is Modern Monetary Theory? Modern monetary theory (MMT) is a school of economic thought that essentially posits that governments can run large budget deficits without much concern because they can always print more money to make up the difference. The theory also argues that deficits only become a problem when they cause inflation, at which point governments should raise taxes. American economist Warren Mosler is credited with developing MMT…
What Is An Australian Real Estate Investment Trust? Australian real estate investment trusts (A-REITs) are funds that give individuals the opportunity to invest in large income-producing commercial properties that are usually available only to large institutions. A-REITs include properties that are located in Australia as well as funds open to Australians that invest internationally. REITs (pronounced "reetz") in general can be bought and sold like regular stocks or in mutual…
What Is The Eurex? Eurex is Europe's largest futures and options market and one of the most liquid fixed income markets in the world. It also offers a broad range of international benchmark products. Based in Frankfurt, Germany, Eurex is a public company that is 100% owned and operated by Deutsche Börse. It has market participants operating from 700 locations around the world, with more than 1.6 billion contracts traded…
The Reserve Bank of Australia (RBA) is Australia's central bank, whose "duty is to contribute to the stability of the currency, full employment, and the economic prosperity and welfare of the Australian people," according to its website. The RBA does this by conducting monetary policy, establishing an interest rate in order to meet a medium-term inflation target, and maintaining a strong financial and efficient payments system. The bank also issues…
The 2020 coronavirus (COVID-19) pandemic unhinged capital markets and domestic economies around the globe. From Asia to the United Kingdom, economic contraction became the rule. Amid lockdowns, quarantines and travel restrictions, day-to-day life underwent a dramatic transformation. Unfortunately for workers, businesses and investors, the world's labour markets experienced turbulence not seen since the Global Financial Crisis of 2008. What Is Unemployment? According to the Merriam-Webster dictionary, unemployment is the "involuntary…
The Australian fires of 2019-20 brought acute environmental and economic damage to the continent. Following an extended period of abnormally dry, windy weather, Australia experienced one of its worst fire seasons on record. From September 2019 to January 2020, "bushfires" decimated an estimated 20 million acres, accounted for 25 human deaths and half a billion animal fatalities. Aside from being an environmental catastrophe, the economic implications stemming from the fires…
The Dow Jones Industrial Average (DJIA) is one of the oldest and probably best-known stock indexes in the world. It is composed of 30 U.S.-based "blue chip" stocks, which change periodically based on market fluctuations and the fortunes of the individual companies. Four of the 10 largest U.S. companies ranked by market capitalisation were members of the DJIA as of 8 June 2022. However, all 10 are components of the…
The Toronto Stock Exchange (TSX) is Canada's largest and oldest equities trading and capital raising market. The TSX is part of TMX Group, which is a publicly traded company that operates several Canadian markets and clearinghouses for equities, cash, derivatives, fixed income and energy. The TSX dates back to 1852, when it was an association of 12 Canadian businessmen. The exchange was formally founded on 25 October 1861, when 18…
What Is A Reserve Currency? A reserve currency is a currency that is widely accepted around the world as a method of payment between countries for goods and services. Reserve currencies are also widely held by governments and central banks as foreign exchange reserves and to settle international debt obligations. Past And Current Reserve Currencies The U.S. dollar (USD) has been the primary reserve currency since the end of World…
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