The U.S. market

The U.S. market

The U.S.based Multinational Company Apple Inc.’s performance from June was influenced by the growth of the U.S. market. Since June 1, 2020, the stock price movement of AAPL increased simultaneously to that of the S&P Futures and Nasdaq IXIC market. Although the percentage changes were the same initially, AAPL’s stock price increased rapidly from June 7, 2020. Besides, it is notable that the U.S. markets influenced the company’s performance considering that the corporation also experienced negative changes in stock prices simultaneously with the U.S. markets. For instance, when the U.S. market price plunged from June 10, 2020, declining for two days, the same effect was notable on Apple’s Inc. stock price. Another similar trend was noted on July 22, 2020, when the S & P ES=F and NASDAQ market prices dropped by 2.5% and 2% respectively, extending the same effect on AAPL’s stock price by 2%. The bottom line remains that the U.S. markets influenced the U.S. based MNC stock movement.

With regards to Intel Corporation, the company’s performance was not influenced by the U.S. market during the two months investment period. In the beginning, that is, from June 1, 2020, to June 10, the corporations’ stock changes were simultaneously increasing alongside the U.S. markets Nasdaq and the S & P Futures. However, the phenomenon occurred for a short period until the markets plunged from June 10, 2020. INTC’s stock price did not increase from June 12, 2020, while the U.S. based markets were growing. Since its decline, the company had a constant price change until July 20, 2020, when it drastically plunged from 17.68% to 15.35% within one day. In sum, the performance of the corporation was not influenced by the U.S. based markets during the two months investment period.

3.

Evaluating the influence of Nikkei market on T.M. and NSANY

Toyota Motors Corporation is a significant holding of Nikkei, a Japan-based stock market. Changes in the Nikkei stock market influence the corporation’s performance. Assessing from June, both the stock prices were on the rise until June 10, 2020, when prices slid slightly. By June 16, 2020, both stock prices generally picked, showing a similar trend. Another simultaneous pattern was repeated on July 27, when both prices downtrend again simultaneously. Although NIKKEI’s stock price changes were big, they influenced the performance of Toyota Motors Corporation.

The U.S. market also influenced T.M.’s stock price attributed to the changes in trends that were recorded on both the corporation and NASDAQ market. For instance, on June 10, 2020, both stock prices declined and picked up by June 14, 2020. However, from June 26, 2020, the U.S. based market changes were great compared to Nikkei.

There was no correlation between foreign stock prices, considering that T.M. experienced a gradual increase differing from NSANY’s high volatility changes. Concerning NSANY, the corporation’s stock performance was influenced by the Nikkei market. However, the changes in the Nikkei market were not as volatile as that of NSANY. Over the last two months, both stocks were on the rise from June 1, 2020, until June 10, 2020, when NSANY experienced a downtrend while Nikkei. As stated above, the magnitude of volatility was not same, considering NSANY showed massive changes. Although Nikkei had a significant influence on NSANY, there were specific reasons that impacted the high volatility of its stocks. On the other hand, the U.S. markets had less impact or influence on the corporation’s performance. For instance, by June 28, 2020, U.S. stock markets were rising while NSANY was experiencing a downtrend. The U.S. markets had a smooth ride, which differed from the changes noted on the corporation.

4.

Assessing Influence of Foreign Exchange Rate on U.S. Based MNCs

Apple Inc. sells most of its products in the U.S. market, followed by Europe and Greater China respectively. As per 2018 statistics, the company recorded net sales $112,093 in the U.S., $62,420 in Europe, and $51,942 in Greater China. Based on foreign market exposure, the company was mostly exposed to the Chinese currency even though Europe records more net sales. The justification is based on the fact that the most dominant currency in China is Yuan. Europe, on the other hand, despite having the Euro as its core-currency, trades with other currencies.

Reviewing the performance of the currency over the last two months of investment, it is noted that the U.S. currency experienced a decline from June 1, 2020. At the beginning of the investment, the U.S. dollar was trading at 7.08 CNY. However, the conversation rate declined to 6.94 CNY per U.S. dollar. Thus, the U.S. currency lost marginal value against the CNY. Nevertheless, that did not influence its performance in stock price. The relationship deduced is that the U.S. currency is gradually losing its value in the Chinese market.

With regards to Intel Corporation, the largest market to the enterprise’s products is China, including HongKong. According to the corporation’s 2019 annual report, the revenue recorded from China was $20,026 million. Singapore followed at a distance with $15,650 million. The United States was the corporation’s third-largest market with $15,617 million. Similar to Apple Inc, Intel Corporation is mostly exposed to Chinese currency. The foreign currency impacted on the negative growth of the company’s stock price.

5.

Assessing the Influence of JPY and USD on T.M. and NSANY Corporations.

Assessing the effect of currency exchange rates of Japanese Yen and U.S. dollar on Toyota Motors, the trend of the exchange rates were as follows. As per June 1, 2020, the Japanese Yen was trading at 0.0094JPY per 1 U.S. dollar. The value of the currency increased to 0.0096JPY when it began to plunge from July 27, 2020. The rate declined gradually, and as per August 13, 2020, the recorded rate was 0.0094 JPY per 1 USD. Comparing the exchange movement with the corporations’ stock price, there is no relationship noted considering that the stock prices increased to June 8, 2020, differing from the exchange rate movement. Hence, there was no causal relationship between the currency rates movement with the stock price.

A similar trend was noted in NSANY, whose primary currency is JPY. Hence, the same exchange rate applies to the assessment of NSANY. Like T.M., NSANY’s stock price movement was not influenced by the JPY to USD exchange rate fluctuations. While the value of JPY increased from June 1, 2020, to July 28, 2020, NSANY’s stock movement increased for eight days before declined with high volatility rates as high as -30%. In sum, both corporations were not influenced by the JPY and USD exchange rate movements.

In conclusion, the critical takeaway deduced from the research is that stock price performance is influenced by currency exchange rates movements, the company’s internal affairs, the market where it trades in. The total investment period of two months provided in-depth insights that can be used to make appropriate decisions. Apple’s stock price increased by 38%, attributed to the movements of the U.S. markets. Intel Corporation plunged in stock prices because the company was facing stiff competition from TMCs. NSANY, on the other hand, had its stocks increased marginally attributed to the company’s internal affairs. T.M. also had a reasonably stable increase associated to the movements in Nikkei Market.