Market Update: Dow Jones Impacted After Economic Growth Worries

It can be assumed that the global investors are fearing the risks of the downturn in the global economic growth which have weighed over Dow Jones Industrial Average yesterday. The sentiments of the market players were already impacted by the weaker expected growth momentum of the Chinese economy and the International Monetary Fund have further increased the concerns related to global growth. The trade war between the United States and China have been derailing the prospects of global growth. On January 22, 2019, Dow Jones Industrial Average closed the session lower at 24,404.48 which implies the fall of 301.87 points or 1.22%.

Moving forward, apart from the earnings reports, the US markets would also be sensitive to the global macro-economic news as well as the news related to the trade wars. As the market players are aware, the permanent settlement of the trade dispute between the US and China would be in the best interests of the global markets. It would also support the sentiments of the global market participants. These types of global disturbances have the potential impede the sentiments of the investors.

Increasing Global Worries Might Continue Impacting Oil Prices

Since the global markets are fearing the downturn in the global economic growth, there are expectations that the oil prices would continue to be negatively impacted by these increased worries. The oil prices largely track the momentum of the global equity markets and if the global markets get negatively impacted, the oil prices are expected to experience the negative momentum as well. The downturn in the global equity markets increases the tensions related to the oil demand which impact the oil prices. Thus, any unfavourable news related to macro-economic variables which have the potential to derail the global markets, could also negatively impact the oil prices.

Australian Markets Ended the Session in Red

The Australian closed the session in red as S&P/ASX200 closed the session in red. On January 23, 2019, S&P/ASX200 ended today’s session at 5843.7 which implies the fall of 15.1 points or 0.3%. If the tensions related to the downturn of the global markets reduces, it might positively impact the global markets. Moreover, there are expectations that the Chinese official might come up with measures which could support broader economy. However, the stocks like Saracen Mineral Holdings Limited (ASX: SAR) and Costa Group Holdings Limited (ASX: CGC) closed the session on the positive note as these stocks rose by 4.861% and 4.264%, respectively. On the other hand, the stocks like Challenger Limited (ASX: CGF) and IOOF Holdings Limited (ASX: IFL) closed the session lower as these stocks have witnessed the fall of 17.118% and 8.202%, respectively.

However, Pinnacle Investment Management Group Limited (ASX: PNI) had made an announcement about the estimated financials for the first half of FY 2019. Read the full news here. Also, Tlou Energy Limited (ASX: TOU) had made an announcement related to the December quarter. Read the full news here.


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