Market Update: Investors Need to Track News Related to Trade War, US Federal Reserve Meet

Market Update: Investors Need to Track News Related to Trade War, US Federal Reserve Meet

As global market players are aware, news related to the trade battle between the US and China as well as other macro-economic news have the potential to affect stock markets. Any sort of negative news from the trade war front could hamper the prospects of global economic growth. In the event of global slowdown, investors tend to reduce their allocations towards equities (largely because these are quite risky) and increase their deployments towards safer asset classes. Some of the investors even sell their existing holdings in equities.

The trade battle negatively impacts the business activities of companies that operate globally. As a result, the companies might also witness unfavourable impacts on their key financial numbers. Therefore, settlement of the war could positively impact the global business environment. Talking about performance on August 30, 2019, Dow Jones Industrial Average ended the session by rising 41.03 points or 0.16% on an intraday basis and the index closed at 26,403.28. On the same day, there was a rise of 1.88 points or 0.06% in S&P 500 Index, which settled at 2926.46.

What Factors Could Affect Oil Prices?

Oil prices are generally affected by geopolitical conditions, macro-economic factors as well as movement of stock markets. If the economic data suggests that the global economy could witness a slowdown, oil demand might get influenced, which could, in turn, affect the prices of oil. Therefore, overall health of the global economy has the potential to influence oil prices. If the trade battle ends on a permanent basis, the global economy might be positively impacted.

Australian Markets Ended in Red: S&P/ASX200 Witnesses a Fall of 0.1% Intraday

Escalation in the trade battle between the US and China could weigh over the prospects of global economic growth and can negatively impact the sentiments of market players. The unfavourable impacts on global stock markets can negatively impact equity markets in Australia. Additionally, the Australian markets are sensitive to overall performance of the broader Australian economy. Coming to the performance on September 3, 2019, S&P/ASX200 witnessed a fall of 6 points or 0.1% on an intraday basis and was closed at 6573.4. On the same day, All Ordinaries fell by 0.1% or 4 points to end the day’s session at 6673.5.

We will now have a quick look at the performance of stocks on ASX. On September 3, 2019, Speedcast International Limited (ASX: SDA) and Western Areas Limited (ASX: WSA) encountered a rise of 20.833% and 7.42%, respectively, on an intraday basis. On the other hand, TPG Telecom Limited (ASX: TPM) and Spark Infrastructure Group (ASX: SKI) ended the session in red, as they witnessed a fall of 4.697% and 4.31%, respectively. Recently, we have provided some important updates on CVN, PLS and WSA for the investors. To have a quick look on the information provided, please click here.

SDA Daily Technical Chart (Source: Thomson Reuters)


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