It can be said the global investors have been maintaining their focus towards the earnings reports of the US companies. However, they are also tracking the news related to the trade wars between the US and China. The geopolitical tensions have the potential to dampen the sentiments of the global investors and these worries can also act as a big hurdle for the global economic growth. The market trackers are currently fearing that there might be slowdown in the growth of the global economy. The trade tensions between the US and China have significantly impacted the broader Chinese economy which happens to a big concern for the market participants.
The global markets are expected to be extremely sensitive to the news related to the trade battle. If any negative news about the trade war gets floated in the market it could negatively impact the broader financial markets and the investors might decide to move away from the deployments in equities. On February 8, 2019, Dow Jones Industrial Average closed the session in red as the index witnessed a marginal fall of 63.20 points or 0.25% and closed at 25,106.33. However, S&P 500 Index closed the session on February 8, 2019 in green has it witnessed a marginal rise of 1.83 points or 0.068%.
How Trade Worries Can Impact Oil Prices?
As the market players are aware, the oil prices are sensitive to the news related to global macro-economic parameters. The oil prices are sensitive to the news about the trade wars between the US and China as these wars can disrupt the global equity markets and can derail the growth momentum. The oil prices would get negatively impacted if the equity witnesses a downward momentum. This happens because a downturn in the equity markets reflect that there might be lower demand of oil. As a result, the oil prices witnesses a fall.
Australian Markets Closed in Red: S&P/ASX200 Witnesses a Marginal Fall
The Australian markets ended the session on February 11, 2019 in red as S&P/ASX200 closed the session at 6060.8 which implies the fall of 10.7 points or 0.2%. Any unfavourable news from the trade war front could negatively impact the Australian equity markets moving forward. The stocks like Estia Health Limited (ASX: EHE) and Sigma Healthcare Limited (ASX: SIG) closed the session in green as the stock price of these companies witnessed the rise of 7.296% and 5.357%, respectively.
On the other hand, the stocks like Bendigo and Adelaide Bank Limited (ASX: BEN) and Spark Infrastructure Group (ASX: SKI) closed the session in red as the stock prices of these companies witnessed the fall of 6.816% and 6.375%, respectively. Bendigo and Adelaide Bank Limited had come forward and made an announcement about the results for the half-year ended December 2018. Read the full news here. Also, Amcor Limited (ASX: AMC) came forward and made an announcement about the results for the half-year ended December 31, 2018. Read the full news here.
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