Market Update: Dow Jones Witnessed Significant Rise. Investors Should Track Events Related to Trade Battle

  • Aug 22, 2019 AEST
  • Team Kalkine
Market Update: Dow Jones Witnessed Significant Rise. Investors Should Track Events Related to Trade Battle

As the market players are aware, stock markets are very sensitive to global macro-economic factors and events associated with the trade battle front. Also, broader momentum of the markets is affected by comments from the US Federal Reserve and by the decision taken in the Federal Reserve meeting. It is advisable to track the US Federal Reserve meeting, as it gives a broader overview as to how the global economy has been performing and how could the economy perform in the future. If the economic uncertainties increase, stock markets might witness negative impacts largely because investors pull their money out of the equities.

In the event of economic downturn, global investors generally prefer to make investments in safer instruments. The trade war between the US and China could adversely affect the broader business environment and can also influence the core business activities of global companies. On August 21, 2019, Dow Jones Industrial Average witnessed a rise of 240.29 points or 0.93% on an intraday basis. Also, on the same day, S&P500 Index rose by 23.92 points or 0.82% to end the day’s session at 2924.43.

Federal Reserve Releases Minutes of July 30-July 31, 2019 Meeting

The US Federal Reserve recently released the minutes of the meeting conducted on July 30-July 31, 2019, in which it was stated that the conditions of labor market were strong and the real GDP witnessed an increase at a moderate rate in 2nd quarter. The investors need to know that the next Federal Reserve meeting has been scheduled to be conducted on September 17, 2019- September 18, 2019.

Australian Markets Ended in Green: S&P/ASX200 Increases By 0.3%

The Australian markets are affected by the overall health of the global economy and, if global uncertainties increase, the Australian economy can witness negative impacts. The stock markets in Australia are sensitive to the performance of Australian economy. However, if the trade battle ends on a permanent basis, these markets can witness positive impacts. On August 22, 2019, the Australian markets ended in green, as S&P/ASX200 index witnessed a rise of 18.5 points or 0.3% on an intraday basis. On the same day, All Ordinaries rose by 0.3% or 20.4 points and stood at 6593.

Coming to the performance of stocks, Pro Medicus Limited (ASX: PME) witnessed a rise of 16.141% on an intraday basis to end the session at A$30.580 per share and Vocus Group Limited (ASX: VOC) rose by 9.589% on an intraday basis to close the session at A$3.200 per share. On the other hand, IDP Education Limited (ASX: IEL) witnessed a fall of 10.424% on an intraday basis to close the session at A$17.530 per share, while Webjet Limited (ASX: WEB) fell 8.303% to close at A$12.700 per share.

We have provided information on the FY2019 results of BINGO Industries Limited and Lovisa Holdings Limited. Click here to have a quick glance.

PME Daily Technical Chart (Source: Thomson Reuters)


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