The concerns of market players related to the fluctuation in the equities have been increasing because of the negative impacts caused by the global macroeconomic factors. The worries about the escalation of the US and China trade battle have weighed over the sentiments of the market players. However, it seems like the worries between the US and China would see the end of the tunnel which could significantly help the investors sentiments to revive. This could be the reason for the favourable momentum in the US stocks yesterday. On December 12, 2018, Dow Jones Industrial Average ended the session at 24,527.27 which represents that the index witnessed the rise of 157.03 points or 0.64%.
The settlement of the US and China trade battle could result in the stabilisation of the equity markets and thus, the investors might become optimistic. This settlement is very much necessary as these kinds of geopolitical uncertainties can disrupt the global trade environment as well as might pull down the investor and business confidence. It can also be said that the yesterday’s movement in the stocks signifies how the positive news from the trade war perspective supports the US stocks.
Settling Trade Battle Supported Oil Prices as Well
The wave of optimism from the trade war perspective has supported the oil prices as well. Needless to say, if the trade war settles on the permanent basis, it would significantly support the oil prices. However, it would not be wrong to assume that the oil markets are also being supported by the decision of reducing the production levels. The market participants were worried about the situation of weaker demand of oil because of the unfavourable momentum in the financial markets. Therefore, the settlement of the trade tensions between the US and China would also support the oil markets.
The signs of the settlements in the trade battle is being witnessed as both the parties have shown their interest in ending the trade war. However, one factor could still be detrimental for the oil prices and that would be expected lower demand. Thus, it can be said that the oil markets are expected to remain uncertain moving forward.
Australian Markets Ended Marginally Higher
It seems like the Australian markets goes the way which is being tracked by the US stocks. On December 13, 2018, the Australian markets ended the session on the positive note. On the same day, S&P/ASX200 closed the session at 5661.6 which implies a marginal increase of 8.1 points or 0.1%. Talking about the stocks which gained momentum, Nine Entertainment Co. Holdings Limited (ASX: NEC) and Syrah Resources Limited (ASX: SYR) ended the session on December 13, 2018 by increasing 8.31% and 8.06%, respectively. On the other hand, TPG Telecom Limited (ASX: TPM) and St Barbara Limited (ASX: SBM) closed the session by witnessing the fall of 16.667% and 4.922%, respectively.
One of the leading banks in Australia named Australia and New Zealand Banking Group Limited (ASX: ANZ) have made an announcement about the change with respect to its Group Executive Australia. Read the full news here. Under junior resources space, Matsa Resources have made an acquisition of Devon Gold Mine. Read the full news here.
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