Market Update:Global Investors Need To Track News About Trade Battle. Federal Reserve Meeting Holds Significance

  • Aug 23, 2019 AEST
  • Team Kalkine
Market Update:Global Investors Need To Track News About Trade Battle. Federal Reserve Meeting Holds Significance

As the market players are aware, global markets are influenced by the trade battle between the US and China and other global macro-economic factors. The economic uncertainties might weigh over the sentiments of market players and, as a result, they might decide to make deployments towards safer instruments, which could lead to the liquidation of their present holdings in stocks. If the global uncertainties increase, stock markets might witness the negative impacts and it looks like that, in the current scenario, the trade war between the United States and China is the primary concern that has been affecting the sentiments of market players.

The US Federal Reserve meeting is very important, as the comments of the Chairman and the decision taken in the meeting have the potential to affect the broader stock markets. The meeting generally provides an idea about the condition of the global economy and what factors could influence moving forward. On August 22, 2019, Dow Jones Industrial Average ended the day’s session in green, depicting a rise of 49.51 points or 0.19%, with the index closing at 26,252.24. S&P 500 index was down by 1.48 points or 0.051%, closing at 2,922.95.

Trade Tensions Could Influence Oil Prices

Oil demand is generally affected by macro-economic factors, overall health of the global economy and movements in broader equity markets. A rise in economic uncertainties could also affect the demand. Therefore, settlement of the trade battle is very important in order to bring stability, as the war has the potential to influence the global business environment.

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

The Australian economy is expected to perform reasonably, with growth around the trends. Due to low-income growth and declining housing prices, consumption growth in Australia has been subdued. As per the recent release of Minutes of Meeting (MOM), the first half of 2019 was characterised by a lower than expected domestic growth. The growth is expected to strengthen gradually, owing to lower interest rates, positive outlook for investments in the resources sector, higher growth in household income and depreciation of the Australian dollar.

Inflation in the June quarter stood at 1.6%, which was broadly in line with the expectations. Inflation is expected to gradually increase to slightly above 2% by 2021.

On August 23, 2019, S&P/ASX200 closed in green, depicting a rise of 21.3 points or 0.3% at 6,523.1. Now let us have a look at the performance of some of the stocks on ASX today. Mayne Pharma Group Limited (ASX: MYX) and Sims Metal Management Limited (ASX: SGM) closed in green with their stock prices witnessing a rise of 10.526% and 9.349%, respectively. Two stocks that ended in red were Costa Group Holdings Limited (ASX: CGC) and Pilbara Minerals Limited (ASX: PLS), witnessing a decline of 16.359% and 7.229%, respectively.

We will now take a look at some of the important news of the day. Key updates on three small-cap financial sector stocks – Mortgage Choice Limited (ASX: MOC), FSA Group Limited (ASX: FSA) and Pengana Capital Group (ASX: PCG). Click here for reading the full news. Also, an insight into full-year results of two media companies – Nine Entertainment Co. Holdings Limited (ASX: NEC) and Southern Cross Media Group Limited (ASX: SXL). To read the full news, please click here.

MYX Daily Technical Chart (Source: Thomson Reuters)

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There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

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