The global market players have a lot to track in the current market environment, as there are several factors that have the potential to derail the prospects of global economic growth. The geopolitical tensions are just one of the factors that could affect the investors’ sentiments. The US Federal Reserve meeting and corporate earnings season in the United States could also influence the movement of broader US stock markets. However, it is advisable that investors should closely observe the earnings of the US companies, as management of the companies, generally, provide detailed outlook after considering macro-economic factors and other business factors, which could influence the performance of their company.
The Blackstone Group is expected to report its earnings on July 18, 2019, while its competitor, The Carlyle Group, would be releasing the earnings report on August 7, 2019. The performance of these companies is very sensitive to the conditions of the global macro-economic environment. On July 15, 2019, Dow Jones Industrial Average ended at 27,359.16, implying 27.13 points increase on an intraday basis. On the same day, S&P 500 Index closed at 3,014.30, reflecting an increase of 0.53 points or 0.02% on an intraday basis.
Oil Prices Are Sensitive to Geopolitical Conditions and Movement of Stock Markets
The oil prices are very sensitive to macro-economic factors and events associated with the trade battle between the US and China. If the trade battle gets worse, it could potentially dent the prospects of global growth and, as a result, the oil demand might be questioned. If the demand for oil gets affected, oil prices might get influenced. Oil prices are also affected by the movement of stock markets, and if the hurdles to global economic growth get removed, the investors might decide to deploy their investable capital towards equities.
Australian Markets Close in Red: S&P/ASX200 Falls 0.2%
The Australian markets might witness the unfavourable impacts, if the health of the global economy gets negatively impacted and if the trade battle between the US and China does not comes to an end. Also, the performance of global stock markets might influence the movement of Australian markets. On July 16, 2019, S&P/ASX200 closed at 6641, which reflects a fall of 12 points or 0.2% on an intraday basis. However, All Ordinaries fell by 10.4 points to close at 6735.8 reflecting an intra-day fall of 0.2%. Galaxy Resources (ASX: GXY) increased by 4.198% to close at A$1.365, while HUB24 Limited (ASX: HUB) grew 3.894% to end at A$11.740 per share. HUB24 Limited witnessed net inflows amounting to $979 million in the quarter ended June 2019, which implies a rise of 32.4% on pcp basis.
On the other hand, Perpetual Limited (ASX: PPT) fell 5.853% to close at A$39.410 per share and Domino’s Pizza Enterprises Limited (ASX: DMP) declined 4.268% to end at A$38.580 per share. We have also provided the recent updates on three small cap stocks. To read the information which has been provided, please click here.
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