Market Update: Dow Jones Witnessed A Huge Decline. Should You Be Concerned?

Market Update: Dow Jones Witnessed A Huge Decline. Should You Be Concerned?

It seems like the worries about the global economic slowdown have again increased in the minds of the global investors which have broadly impacted the US markets as, yesterday, Dow Jones ended the day in red. The fall in the Dow Jones got triggered after the market players started fearing that trade tensions might not end soon. The geopolitical worries have the potential to significantly impact the broader sentiments of the markets. It can be said that the uncertainties with respect to the settlement of the trade battle have increased. If the trade battle between the US and China does not end soon, it could significantly impact the broader financial markets. Also, as the market players are aware, the Chinese economy has weakened which had earlier increased tensions about the slowdown in the global economic growth.

Therefore, for the interests of the global market players, it is very important that the permanent settlement of the trade battle occurs. On February 7, 2019, Dow Jones Industrial Average closed the session significantly lower at 25,169.53 which implies the fall of 220.77 points or 0.87%. Also, S&P 500 Index wrapped up the session at 2,706.05 which implies the fall of 25.56 points or 0.94%.

What Could Affect Oil Prices? 

As the market players are aware, the oil prices are sensitive to global macro conditions. Therefore, any unfavourable news with respect to the trade battle could significantly impact oil prices. The deterioration in global economic growth could negatively impact the sentiments of the investors. Also, this deterioration could also negatively impact the oil demand which might weigh over the oil prices. Therefore, if the trade battle becomes worse, it might pull down the oil prices. Also, if the financial markets witness a negative momentum, it would also adversely affect the oil prices.

Australian Markets Closed Marginally Lower: A Brief Look

Today, the Australian markets have closed the session in red as S&P/ASX200 closed at 6071.5 which implies the fall of 21 points or 0.3%. Recently, the central bank of Australia had kept the cash rate unchanged i.e. it is 1.50%. Moreover, the performance of the Australian economy is expected to be sensitive to the momentum in the Chinese economy. Therefore, the permanent settlement of the trade battle between the US and China would help the Australian economy. The stocks like News Corporation (ASX: NWS) and Evolution Mining Limited (ASX: EVN) had closed the session in green as the stock prices rose by 2.729% and 2.387%, respectively. On the other hand, the stocks like Beach Energy Limited (ASX: BPT) and Domain Holdings Australia Limited (ASX: DHG) witnessed the fall of 9.669% and 6.335%, respectively.

Sponsored ad by Kalkine

HRL Holdings Limited (ASX: HRL) had come forward and made an announcement about the half-yearly results. Read the full news about this here. Skyland Petroleum Group Limited (ASX: SKP) had provided an update related to the capital placement. Read the full news about this here.

Dividend Stocks To Buy

The Income available from dividends remains attractive for many investors.

We take a look at the best yields on the market and assess what they say about a company’s prospect.

One Thing is certain, though, Australia interest rates are still low, making income difficult to come by and keeping the focus for many investors on high yielding stocks. Kalkine’s team of analysts bought you handpicked report for “Top 25 Dividend Stocks For 2018.”

ASX-relevant Special Reports are published year-round to provide a detailed analysis into an investing opportunity or a potential risk to your portfolio.

Click here to get your free report.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

Facebook Comments

Join Our Discussion

Start discussion with value Investors for ASX Stock Market Investment and Opinion.


6 Cannabis Stocks under Investor’s Limelight…

Cannabis companies that sell both medicinal weed and recreational pot. Marijuana stocks to look at. Marijuana mergers and acquisitions. Dispensary data analytics. Upcoming marijuana IPO’s Those phrases have become increasingly common as marijuana legalization spreads.

Global spending on legal cannabis is expected to grow 230% to $32 billion in 2020 as compared to $9.5 in 2017, according to Arcview Market Research and BDS Analytics. As of June 29, 2018 the United States Marijuana Index, despite a lot of uncertainty around regulations, has over the past 1 year gained 71.49%, as compared to about 12% gain seen by the S&P 500.

Click here for your FREE Report

LEAVE A REPLY

Please enter your comment!
Please enter your name here