As the investors know, global stock markets are being affected by global macro-economic factors and events which are associated with the trade battle between the US and China. Any positive news from the trade war front favourably impacts the broader stock markets. An end to the trade battle between the US and China could be really comforting for global market players and the global economy might be positively impacted. Recently, the news got floated in the markets that the US President has delayed the tariffs on some of the Chinese goods.
If prospects of global growth come into question, market players tend to avoid making deployments towards equities and, sometimes, they even withdraw their money from their current holdings. As a result, broader stock markets witness negative momentum. On August 14, 2019, Dow Jones Industrial Average ended the session in green, as the index witnessed a rise of 372.54 points or 1.44% on an intraday basis to end the session at 26,279.91. On the same day, S&P 500 Index also ended in green by rising 43.23 points or 1.50% to end the session at 2926.32. Therefore, it can be said that, in order to bring stability in broader stock markets, the trade battle needs to end.
Oil Prices Are Sensitive To Health of Global Economy
Oil prices are sensitive to global macro-economic factors as well as to health of the global economy. If uncertainties rise, oil demand might be questioned, which could, in turn, influence the prices of oil. Also, these prices are affected by the movement of stock markets.
Australian Markets Ended in Green: S&P/ASX200 Rises by 0.4% Intraday
The Australian markets are negatively impacted by tensions about the global economic slowdown and if the economic uncertainties increase. The settlement of the trade battle between the US and China might positively impact the broader Australian economy and Australian stock markets. Also, it needs to be noted that the Australian economy’s performance might be affected by the performance of the global economy. Therefore, settlement of the trade war might positively impact the broader Australian economy.
On August 14, 2019, S&P/ASX200 witnessed a rise of 0.4% or 27.4 points to end the session at 6595.9 and All Ordinaries encountered an increase of 29.4 points or 0.4% to close the session at 6677.5. We will now be having a look at the performance of the stocks on Australian Securities Exchange. Eclipx Group Limited (ASX: ECX) rose by 7.241% and settled at A$1.555 per share, while CSL Limited (ASX: CSL) witnessed a rise of 6.606% to end the trading session at A$234.000 per share.
On the other hand, Pact Group Holdings Ltd (ASX: PGH) and Saracen Mineral Holdings Limited (ASX: SAR) witnessed a fall of 16.906% and 8.725%, respectively, on an intraday basis. We have provided some highlights on four energy and resources sector stocks (i.e. VEN, MSE, LCK and FPL). Please click here to have a look at the same.
ECX Daily Technical Chart (Source: Thomson Reuters)
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