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.
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.
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