Market Update: Dow Jones Ends In Green.But Investors Are Worried About Trade Battle

Market Update: Dow Jones Ends In Green.But Investors Are Worried About Trade Battle

The global equity markets are very sensitive to the macro-economic variables and news related to the trade war between the US and China. The geopolitical worries have the potential to dampen the sentiments of market players and, as a result, they tend limit their deployments towards equity markets. Also, some of the market players even tend to sell their present holdings because of the increasing uncertainties which negatively impact the broader momentum of global equity markets. Therefore, the permanent settlement of trade dispute between the US and China is very important because the settlement could bring the much-needed stability in the global equity markets.

Also, the increasing worries about the trade battle might impact the business environment which is detrimental to the health of global economy. The rising trade worries have the potential to significantly impact the broader economy and this could infuse increased volatility in the global markets. On May 10, 2019, Dow Jones Industrial Average ended the day in green as the index got closed at 25,942.37 which implies a rise of 114.01 points or 0.44% on an intraday basis. On the same day, S&P 500 index got closed at 2,881.40 which reflects an increase of 10.68 points or 0.37%.

Oil Prices Might Also Get Influenced With Rising Trade Worries

The oil prices are very sensitive to overall health of the global economy and a rise in geopolitical worries can influence the movement in oil prices. Therefore, the worries related to the trade war between the US and China can affect the oil prices. Also, as the economic uncertainties increase, the demand of oil also comes into question. Therefore, the settlement of the geopolitical concerns are of utmost importance in order to bring stability in the global economic environment.

Australian Market Closed in Red: S&P/ASX200 Falls 0.2%

The Australian equity market might also get negatively impacted if the trade battle between the US and China becomes worse. The rising tensions about global economic slowdown can influence the momentum of broader equity market in Australia. The settlement of trade battle might also help the Australian market. Today (i.e. May 13, 2019), S&P/ASX200 closed at 6,297.6 which reflects a fall of 13.3 points or 0.2% on an intraday basis. We will now have a look at the performance of some of the stocks.

Sponsored ad by Kalkine

LendLease Group (ASX: LLC) and Technology One Limited (ASX: TNE) closed the session in green as the prices of these stocks witnessed an increase of 8.713% and 3.169%, respectively. On the other  hand, the stock prices of Reliance Worldwide Corporation Limited (ASX: RWC) and Smartgroup Corporation Ltd (ASX: SIQ) encountered a fall of 15.618% and 5.316%, respectively. RWC was primarily impacted by market’s reaction to its revised EBITDA guidance.

Let us now have a look at some important news. AusNet Services Limited (ASX: AST) came forward and made an announcement about FY 2019 results. To read the full news related to this, please click here. Also, Kirkland Lake Gold Ltd (ASX: KLA) made an announcement about Q1 FY 2019 results. To read the entire news about this, please click here.

Comparative Price Chart for LLC, TNE, RWC (Source: Thomson Reuters)

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.


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


Please enter your comment!
Please enter your name here