The global equity markets are very sensitive to the macro-economic factors and the market participants can decide to liquidate their holdings if the global uncertainties increase. The global stock markets can also be negatively impacted if the trade wars between the US and China gets worse. Not so long ago, the market players were getting worried about the imposition of tariffs on the imports from Mexico. However, it is now expected that the Trump administration would not be levying tariffs on the imports from Mexico and it can be said that it has provided relief to the market participants to some extent.
If the trade battle between the US and China ends on the permanent basis, it might also positively impact the broader movement of the global stock markets. The reduction of global growth worries can prompt the market participants to deploy their investable capital towards equities. Yesterday (i.e. June 10, 2019), Dow Jones Industrial Average got ended in green as the index witnessed a rise of 78.74 points or 0.30% and got closed at 26,062.68. On the other hand, S&P 500 Index got ended at 2,886.73 which reflects a rise of 13.39 points or 0.47% on an intraday basis.
Oil Prices Might Get Affected If Economic Uncertainties Rise
As the market trackers are already aware, the oil prices are sensitive to the movement of stock markets and also to the global factors. Therefore, it can be said that the tensions related to the trade battle not only affects the global financial markets, but it also influences the movement of oil prices. This is because these types of geopolitical worries are expected to influence the demand of oil.
Australian Markets Got Ended in Green: S&P/ASX200 Witnesses a Rise of 1.6%
The Australian markets are expected to be positively impacted if the global tensions and the economic uncertainties get reduced. This is because the reduction in worries can prompt the Australian investors to make deployments in equities. However, the performance of broader Australian economy is very sensitive to the trade battle between the US and China. Today (i.e. June 11, 2019), S&P/ASX200 got ended at 6546.3 which implies a rise of 102.4 points or 1.6% on an intraday basis.
Coming to the movement of stocks, Nearmap Ltd (ASX: NEA) and Vocus Group Limited (ASX: VOC) got ended in green as the prices of these stocks have witnessed a rise of 9.375% and 8.877%, respectively on an intraday basis. On the other hand, The Star Entertainment Group Limited (ASX: SGR) and AGL Energy Limited (ASX: AGL) have witnessed a fall of 15.743% and 7.221%, respectively on an intraday basis.
In order to have a quick look at Australia’s Renewable Energy Space and four stocks related to it, please click here. Also, we have provided recent updates on two artificial intelligence (or AI) stocks named Dragontail Systems Limited (ASX: DTS) and Yojee Limited (ASX: YOJ). To have a broad overview of the same, please click here.
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