In the present scenario, it can be said that the global equity markets are getting influenced by the macro-economic parameters which have the potential to affect the growth of global economy. The investors should closely track the news related to the trade battle between the US and China as the performance of the global economy is sensitive to the geopolitical concerns. A rise in the economic uncertainties can negatively impact the performance of the stock markets as the investors liquidate their equity holdings. There are expectations that the US Federal Reserve might go for the rate cut because of the increasing worries about the slowdown in the global growth. Recently, a significant rise in the energy shares was witnessed largely because there was an attack on 2 tankers.
The settlement of the trade war between the US and China is very important in order to bring stability in the stock markets. Yesterday (i.e. June 13, 2019), Dow Jones Industrial Average got wrapped up at 26,106.77 which reflects a rise of 101.94 points or 0.39%. On the same day, S&P 500 Index got closed at 2,891.64 which implies an increase of 11.8 points or 0.41% on an intraday basis.
What Factors Have the Potential To Affect Oil Prices?
The attack on the two oil tankers are influencing the oil prices in the present scenario. However, the oil prices are also sensitive to the movement of stock markets and to the news about the trade battle between the US and China. A rise in economic uncertainties and global growth worries have the potential to affect the oil prices moving forward. The tensions about slowdown questions the demand of oil which, in turn, affects the prices of oil.
Australian Markets Wrapped Up in Green: S&P/ASX200 Rises by 0.2%
The Australian markets are very sensitive to the global economic factors and a rise in geopolitical tensions can have an adverse impact on the equity markets in Australia. However, the settlement of trade battle could reduce the concerns of global downturn in the investors’ minds and can prompt the Australian investors to make deployments in the Australian equities. Today (i.e. June 14, 2019), S&P/ASX200 got closed at 6,554 which implies a rise of 11.6 points or 0.2% on an intraday basis. Talking about the movement in stocks, Nanosonics Limited (ASX: NAN) and Northern Star Resources Ltd (ASX: NST) got closed in green as there stock prices have witnessed a rise of 6.71% and 5.611%, respectively on an intraday basis.
On the other hand, Challenger Limited (ASX: CGF) and AMP Limited (ASX: AMP) got ended in red as the stock prices have witnessed a fall of 6.475% and 5.804%, respectively on an intraday basis. We have provided crucial information about the stock named Prospa Group Limited (ASX: PGL) which has been recently listed. To read the key information, please click here. Additionally, there were some of the recent updates on Wesfarmers Limited (ASX: WES) as well as Woolworths Group Limited (ASX: WOW) which are important for the market players to know. To read about the same, please click here.
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