Australian Markets Impacted By Global Sell Off: Should You Worry?

  • Oct 11, 2018 AEDT
  • Team Kalkine
Australian Markets Impacted By Global Sell Off: Should You Worry?

The global tensions have been on the rise and thus, they are significantly impacting the equity markets and are weighing on the sentiments of the investors. After the entry of Chinese markets this week, the trade worries have renewed again leading to significant outflows from the markets. Not only this, there are other macro factors which are impacting the markets. It seems like the global markets are still not done with the news of the higher treasury yields. The markets are still reacting negatively on the news of higher yields. If you consider these events as minor events, the report from the International Monetary Fund or IMF is something which you can’t afford to ignore. The fund’s report further accelerated the downward momentum as they stated that the global economy is exposed to significant risks because of the ongoing trade wars between the US and China. 

Considering the present scenario, the markets are highly risky and any position that needs to be executed has to be done with utmost care. The primary drivers for the volatility in the markets globally are escalated trade worries as well as the selling momentum in the treasuries. On October 10, 2018, the downward trend was also visible in the US markets. Dow Jones Industrial Average or DJIA ended the session lower at 25,598.74 which implies an intraday decline of 831.83 points or 3.15% while S&P 500 ended at 2,785.68 reflecting the fall of 94.66 points or 3.29%. The strong downward momentum in the technology stocks was witnessed primarily because the heavy weight stocks tumbled. Amazon (NASDAQ: AMZN) and Facebook (NASDAQ: FB) ended the session lower by falling 6.15% and 4.13%, respectively.

Amidst the strong downturn in the global economies, let’s not forget about the emerging economies. The dark clouds are also hovering over the emerging markets primarily because of the appreciation of the US dollar. India has been severely impacted by the global sell offs with markets witnessing a strong downtrend. The depreciation of the Indian rupee and the fears regarding the current account deficit are still impacting the Indian markets as well as economy as a whole. As per the treasurer of Australia, the trade concerns between US and China need to be seriously taken and measures need to be adopted which could help in controlling these disputes. The Australian economy might also get hurt if the trade tensions get escalated further as per the International Monetary Fund. As a result, the fund has downgraded the economic growth of the Australia and also stated that the trade wars risk would also be felt by the economies globally.

The higher interest rates are creating the downturn in the global economies. The statement of Federal Reserve which reflected that the US economy is expected to witness robust growth has further raised the hopes of further rate hikes by the apex bank of the US. As a result, the broader views indicate for expecting that the American economy might witness another hike when the Fed meets in December 2018.

Dividend Stocks To Buy

The Income available from dividends remains attractive for many investors.

We take a look at the best yields on the market and assess what they say about a company’s prospect.

One Thing is certain, though, Australia interest rates are still low, making income difficult to come by and keeping the focus for many investors on high yielding stocks. Kalkine’s team of analysts bought you handpicked report for “Top 25 Dividend Stocks For 2018.”

ASX-relevant Special Reports are published year-round to provide a detailed analysis into an investing opportunity or a potential risk to your portfolio.

Click here to get your free report.


The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.


All pictures are copyright to their respective owner(s) does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.


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

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK