It can be said that investors in the US markets tend to react to the news associated with trade battle between the US and China and other macro-economic variables. From the past few months, the market participants are expecting that efforts are being made to resolve the trade dispute. Earlier, the investors have taken a hint that the US Federal Reserve would be patient when it comes to increasing the interest rates. The rise in the interest rates generally negatively impact the broader equity markets. However, the US Federal Reserve needs to adjust the interest rates to keep a check on inflation. Earlier, there have been increased fears in the minds of investors related to the global economic downturn.
Also, the market trackers were fearing that the trade battle might derail the prospects of global economic growth which could, in turn, dampen the sentiments of broader equity markets. If the concerns about trade fight increases, it can also disrupt the investors’ sentiments and the players might liquidate their holdings in equities. This is because if the global downturn risks increase, the investors would avoid making investments in equity asset classes and they might decide to go for safer instruments. Yesterday (i.e. March 6, 2019), Dow Jones Industrial Average ended the session at 25,673.46 which reflects the fall of 133.17 points or 0.52% in an intraday basis. Also, S&P 500 Index ended at 2771.45 which reflects a decline of 18.2 points or 0.65%.
Understanding Movement in Oil Prices
In the present scenario, it can be said that the oil prices are very sensitive to news related to trade battle between the US and China and the efforts of OPEC. However, the oil prices also get influenced by the macro-economic indicators. The settlement of the trade war is expected to help the broader equity markets and oil prices. If the fears about global downturn reduce, it might also support the oil prices.
Australian Markets Ends in Green: What You Need to Know
Today (i.e. March 7, 2019), the Australian markets closed in green as S&P/ASX200 Index got wrapped up at 6263.9 which reflects the rise of 18.3 points or 0.3%. The permanent settlement of trade dispute is also beneficial for the equity markets in Australia. Talking about the stocks, Super Retail Group Limited (ASX: SUL) and Costa Group Holdings Limited (ASX: CGC) had closed the session in green as the prices of these stocks rose 4.814% and 4.633%, respectively. On the other hand, Rio Tinto Limited (ASX: RIO) and Syrah Resources Limited (ASX: SYR) had closed the session in red as the prices of these stocks fell 4.759% and 4.28%, respectively.
Coming to some of the important news, Brookside Energy Limited (ASX: BRK) had come forward and released an investor presentation. Read the full news here. Also, Decmil Group Limited (ASX: DCG) had made an announcement that it has been awarded with the first wind project for $72 million. Read the full news here.
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