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3. Evaluation ReportIn the evaluation report, I will discuss the performance of the stock market in general over the chosen period, with particular emphasis on worldwide economic factors, political factors and legal factors and how these factors influenced the FTSE100 index and all share indexes. Then, I will compare the performance of each company to that of the sector in which the company operates. After that, I will analyze the trend of the stock price of the four companies chosen based on the weekly historical figures of this chosen period combining the relative news recorded and give the trend expectancy of the stock price. 3.1 Marco economy Influenced by the financial crisis and American sub prime crisis, the European Union such as Greece and Ireland has suffered the financial disaster Therefore, the European Minister has to collect the monetary fund to rescue this debt crisis. The main reasons of the debt crisis are the citizens over consumption and the countries high taxation. This following news has told us clearly about the Ireland debt crisis. Ireland had a financial crisis recently. “European ministers are expected to sign off on an 85 billion euro ($112.7 billion) rescue for Ireland on Sunday, making it the second euro member after Greece to require a bailout in the face of a crippling debt crisis. Britain is not part of the euro zone but could be asked to contribute at least 6 billion pounds ($9.5 billion) under the European Financial Stabilization Mechanism, leaving aside any bilateral aid.”1(www.londonstockexchange.com ). Absolutely, this serious problem will affect the fluctuation of the shares price in Europe which was shown in the FTSE100 index below. Euro crisis bring a phenomenon that people were all less confident to the whole stock market. Therefore, the stock price sharply decreased at that period. 3.2 FTSE 100 Index This table shows the fluctuation of FTSE 100 and FTSE all share Index from 20th, Nov 2010 to 5th, Mar 2011.From the two curves we can see, compared to week1, the share index dropped slightly on week 2 from 5732 to 5668. The main reason was the Euro Zone crisis, which largely lowered the investors confidence. So the whole stock market was in recession. However, from the period week 2 to week 6, the share market had a great change. FTSE 100 and all share indexes had a sharp increase. The following news may help to state the reason. “European central banks to increase purchase of government bonds in countries such as Italy and Ireland and keep interest rates unchanged at 1% to ease the crisis facing the euro area.”2 (http: /www. bloomberg.com)In order to stabilize the stock market, EU government has to take different measures to rescue this Euro crisis. After these measures were carried out, the whole stock market grew steadily from week 2 to week 7. The second news is that U.K. November Home Prices Fall for Fifth Month on Weaker Demand. “U.K house prices fell by one fifth in December as demand for property dropped the most in almost two years”, Home track Ltd. said. The average cost of a home fell 0.8 percent from October to 155,000 pounds ($242,900), the London-based property researcher said in an e-mailed statement today. Demand for homes, measured by the change in new buyers registering with real-estate agents, fell 4.3 percent, the biggest decline since January 2009. ”3 ( http:/www.reuters.com)We all know that stock market and estate market are negative correlation. That the estate market is in recession for long time in UK will result in the stock market bulling. That is one of the reasons why the FTSE 100 shows an upward tendency. Experienced one week from week 6 to week 7, FTSE 100 index had a relative drop. The figure changed from 6008 to 5899. But compared to week 1, it was still higher. After week 7, the average stock price went up again and had a slightly fluctuation in the following weeks. This news can support the fluctuations Interest rates need to get back to a normal level of about 5% says MPC member Paul Fisher“Mortgage borrowers need to brace themselves for much higher interest rates, a member of the Bank of Englands interest rate-setting Monetary Policy Committee has warned.Paul Fisher, who is also the executive director of markets at the Bank of England, said people need to appreciate that interest rates will go back to “normal levels” eventually.“We hope people are aware that interest rates at some point will go up again and that they will head back to a normalized position,” he told the Telegraph newspaper.When asked, Fisher said that a normalized rate would be about 5%. Interest rates have been set at 0.5% since March 2009, meaning big reductions in payments for those home owners on variable mortgages.The Bank estimates that two thirds of mortgage borrowers are currently on variable rates. It has been reluctant to raise interest rates because of the impact this c
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