Market Update: Dow Jones Finishes Off In Green. Focus Needs to Be On Trade Battle

Market Update: Dow Jones Finishes Off In Green. Focus Needs to Be On Trade Battle

As the market players are aware, the trade battle between the US and China could derail the prospects of global economic growth and can also negatively impact the movement of broader stock markets. In the event of global slowdown, global investors tend to make deployments towards safer asset classes, and they liquidate their holdings in equities. Also, they avoid deployments in stock markets largely because of the risks associated with equities. In the current scenario, it can be said that the market players are fearing the risks of recession. The trade war between the US and China could weigh over the prospects of global economic growth and can negatively impact the global business environment.

To bring stability as well as to safeguard the interests of global investors, the trade battle needs to come to an end. On August 15, 2019, Dow Jones Industrial Average finished the session in green, as it encountered an increase of 99.97 points or 0.39%. Also, on the same day, S&P 500 Index ended in green, as it witnessed a rise of 7 points or 0.25% to settle at 2847.60.

Geopolitical Conditions Might Affect Oil Prices

As we know, the oil prices are influenced by global macro-economic conditions as well as geopolitical landscape. A rise in geopolitical tensions could be detrimental to oil demand and, as a result, oil prices are affected. Also, oil prices are influenced by the movement of stock markets. The fears of recession as well as global slowdown can affect the oil demand moving forward. Therefore, the trade battle needs to end on a permanent basis.

Australian Markets Ended in Red: S&P/ASX200 Witnesses A Marginal Fall

The Australian stock markets might witness negative impacts if the trade battle between the US and China does not end on a permanent basis. The trade war could disrupt the broader growth momentum and can also weigh over the market players’ sentiments. As a result, global investors might decide to sell their existing holdings in the equity asset class. On August 16, 2019, S&P/ASX200 ended the session in red, as the index closed at 6405.5, which represents a fall of 2.6 points on an intraday basis. Also, on the same day, All Ordinaries witnessed a fall of 0.1% or 4.9 points to close at 6485.9.

We will now have a look at the performance of stocks on ASX. On August 16, 2019, Credit Corp Group Limited (ASX: CCP) encountered a rise of 13.295% to close the session at A$27.270 per share and Super Retail Group Limited (ASX: SUL) witnessed an increase of 7.854% to end the session at A$9.750 per share. On the other hand, oOh!media Limited (ASX: OML) and Breville Group Limited (ASX: BRG) witnessed a fall of 27.475% and 9.818%, respectively, on an intraday basis.

We have provided information on the latest updates on three stocks (i.e. ASB, LYC and CIM). Click here to have a quick look.

CCP Daily Technical Chart (Source: Thomson Reuters)


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