Market Update: What Investors Can Expect From The US Markets

In the previous week which ended on October 19, 2018, the US markets did witness some negative impacts. Some sort of unfavorable momentum was clearly visible in the growth stocks. However, the sentiments of the market players were also impacted by the minutes which were released on the Federal Reserve’s meeting. The tone of the Federal Reserve was hawkish and, as a result, the market observers are expecting a rate hike in December 2018 which would be the fourth one for 2018. The policymakers are expected to raise the rates to the restrictive levels which would help them to control the economic growth as rapid pace of the growth might lead to increased inflation. The US President Donald Trump has been criticizing the Fed for its hawkish stance, but when seen from the Fed’s viewpoint, raising interest rates would help in controlling the inflation. In the US equities, a jump was witnessed because of the strong earnings season but, as expected, it did not last as the global macro events continued to weigh on the investors’ sentiments.

What’s happening to the oil prices: On October 22, 2018, the oil prices have again witnessed a rise as the oil space might get tightened after the implementation of the US sanctions against the exports of Iran which have been slated for the earlier next month. The Trump administration has been making efforts to decrease the exports of the Iranian oil to zero so that the country gets prompted to renegotiate the agreement with the US with respect to the nuclear program. According to Steven Mnuchin, the countries would hardly be getting the sanction waivers. Gone are the days of the Obama administration when the countries (particularly in Asia) got their sanctions waived off.

The Movers and Shakers of Australian Markets: As was widely expected by the market players, the Australian markets ended on the negative note. On the global basis, the Chinese markets witnessed the positive momentum in the previous week. However, mixed performance was encountered by the US markets while the European markets were somewhat unable to cheer up the investors. The emerging economies would continue to be impacted by the increased levels of the global risks like trade tensions, elevated oil prices, higher US interest as well as appreciation of the US dollar. As we approach towards the end of the calendar year 2018, we need to look out how the Australian players tackle the global uncertainties.

On October 22, 2018, S&P/ASX200 ended the session at 5904.9 which implies the fall of 34.6 points or 0.6% intraday. Cabcharge Australia Ltd (ASX: CAB) has made an announcement regarding the acquisition of Mobile Technologies International. However, Kidman Resources Limited (ASX: KDR) has made an announcement of the results of the pre-feasibility study which was done on Kwinana Lithium Refinery. On the same day, Pilbara Minerals Limited (ASX: PLS) and Western Areas Limited (ASX: WSA) ended the session by increasing 5.096% and 3.433%, respectively. On travel related space, Sealink Travel Group Ltd (ASX: SLK) ended the day by advancing 3.704%.

The investors in the Australian banks are in a dicey position as these banks have been going through a rough patch because of the interim report and increased regulatory scrutiny.

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The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkinemedia.com and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.

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