Market Update: Dow Jones Ended In Red: Investors Are Fearing Global Slowdown

  • Aug 05, 2019 AEST
  • Team Kalkine
Market Update: Dow Jones Ended In Red: Investors Are Fearing Global Slowdown

As market players are aware, the performance of the global economy is influenced by macro-economic factors as well as by geopolitical conditions. The trade battle between the US and China could disrupt the prospects of economic growth and can negatively impact the health of the global economy. In the present scenario, it can be said that the market participants are getting worried about the trade battle which has been affecting the broader US markets. If the trade battle does not end, the market players might decide to avoid making deployments towards equities as well as they can even sell their present holdings.

Also, recently, the US Federal Reserve announced a rate cut of 25 basis points and, presently, there are expectations that no further rate cut would be announced by the US central bank. On August 2, 2019, Dow Jones Industrial Average witnessed a fall of 98.41 points or 0.37% on an intraday basis to close the session at 26,485.01. On the same day, S&P 500 Index wrapped up the day at 21.51 points or 0.73% and settled at 2932.05.

Oil Prices Might Remain Sensitive to Macro-Economic Conditions

The overall health of the global economy, macro-economic factors as well as geopolitical conditions are the primary factors which have the potential impact on oil prices. A rise in economic uncertainties can affect the demand for oil which could, in turn, influence the oil prices. The events related to the trade battle between the US and China could influence the oil prices. The escalation in the trade war can negatively impact the sentiments of the global investors, therefore, the battle needs to settle down.

Australian Markets Wrap Up in Red: S&P/ASX200 Witnesses A Fall of 1.9%

The Australian markets can also be negatively impacted if the worries about the global slowdown increase. The health of the global economy and broader business environment can influence the performance of the Australian economy. On August 5, 2019, S&P/ASX200 encountered a fall of 128.3 points or 1.9% to close the session at 6640.3 and, on the same day, All Ordinaries witnessed a fall of 135.5 points or 2.0% to close the session at 6710.6. We will now have a look at the performance of some stocks.

On ASX, Resolute Mining Limited (ASX: RSG) witnessed a rise of 4.301% and closed the session at A$1.940 per share and Ardent Leisure Group Limited (ASX: ALG) rose by 3.404% to settle at A$1.215 per share. On the other hand, Appen Limited (ASX: APX) fell by 10.612% and closed at A$26.870 per share while WiseTech Global Limited (ASX: WTC) encountered a fall of 8.064% to settle at A$29.300 per share.

We have provided crucial information on five stocks (i.e. ORA, BLD, IPL, FBU and MND) and we believe that the investors should have a broader view of the same. To have a look, please click here.  Some insights have been provided on Australia’s agriculture sector. Click here to have a broader look.


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