Market shares and prices are volatile and it can be hard to understand how these systems operate. However, when they are analysed closely, they can provide high profits and returns to anyone who is able, and of course willing, to make the investment. There is always an element of risk involved when working with the stocks and shares markets, and it is important to remember that outside occurrences, such as sporting events, can also have an effect on the status of market shares.
Mega sporting tournaments always have a significant effect on the stocks and shares market, through increased exposure and awareness thanks to corporate sponsorship. The 2013 Wimbledon Championship helped the FTSE 100 enjoy a 5.1 per cent increase and companies with Scottish roots such as AG Barr – the producers of Irn-Bru – benefitted from Andy Murray’s title win, as they welcomed an increase in sales of 5.8 per cent. There was also a 7.5 per cent rise in share prices for the 10 biggest companies based in Scotland while the competition took place, further proving that major sporting events such as World Cups and the Olympics can have an impact on Forex markets.
The Rugby World Cup is currently being hosted by England and Wales. England are many people’s favourites to be crowned the 2015 Rugby World Champions. However, current champs New Zealand are also rated highly, standing more than a good chance of retaining their title. South Africa and Samoa are also popular with experts and fans alike who predict that both of these teams are more than capable of taking the trophy home.
During the coming weeks, a whole host of super-strength men will take to the pitch to showcase their prowess and speed to fans of rugby all around the world. With an impressive 41,000 jobs being created thanks to the event, it stands to reason that the UK economy will benefit notably. In fact, it has been predicted that a staggering £982 million will be added to their GDP, along with the £85 million that has been invested in infrastructure to support the tournament.
Hotel groups and those involved in the leisure industry in the UK will also benefit from the 2015 Rugby World Cup, due to the increased number of visitors to the country needing to be supplied with everything from food and drinks to accommodation.
Host nations enjoy profits in a variety of sectors and retailers selling official merchandise will also see an increase in their revenue, which will further add to the power of the pound sterling. The biggest investor in this year’s competition is The Coca Cola Company while other sponsors, suppliers and partners help to add to the overall value of the entire competition, which has a projected economic output of £2.2bn for the UK.
While for many people the stocks and shares markets can initially appear confusing and complicated, it is evident that big sporting events have an impact on the trends and changes that occur. We will have to wait and see who will come out victorious, both in the stock markets and on the pitch as the 2015 Rugby World Cup rolls on.