As the market trackers were expecting, Dow Jones ended the session on December 3, 2018 on the strong note supported by the temporary halt in the trade battle between the United States and China. As we know, in the current scenario, any news related to the trade battle has the potential significantly affect the market movements. Therefore, this positive news from the trade point of view has helped the investors’ sentiments to recover. Earlier, the sentiments of the investors were severely impacted by the tensions related to the trade battle between the US and China. This positive news related to the trade battle was much-needed by the market players because if the outcome had not been positive, there would have been a high probability of the escalation of the trade battle which could severely impact the business and consumer confidence. The escalation of the battle has the potential to significantly impact the technology sector which could, in turn, disrupt the movement of the broader markets. On December 3, 2018, Dow Jones Industrial Average ended the session at 25,826.43 which implies the rise of 287.97 points or 1.13%.
A Quick Look at What’s Happening in Oil Markets
While the investors or market players just got free with one of the big and important meeting (G20 meeting), they need to brace themselves for another meeting which would determine the outlook for the oil prices, a topic which has also been hovering over the minds of several market trackers. On December 6, 2018, the meeting would primarily include the discussions related to the cuts to the production levels which could provide the support to the prices of the oil. There have been concerns related to demand as many players are expecting that the demand of the oil might reduce, and this could pull down the prices. However, after the G20 meeting ended with the positive outcome, even the oil prices witnessed the rise. There had been concerns that the slowdown in the global economy could negatively impact the demand of the oil. Earlier, there had also been fears about fall in the oil prices because of the oversupply situation.
As Expected, RBA Keeps the Rates Unchanged
As expected by the market participants, Reserve Bank of Australia or RBA kept its cash rate at 1.50%. As per the media release, there have been indications related to the weaker global trade mainly because of the trade worries. The release also stated that the economy of Australia has been witnessing the decent performance. The growth in the GDP is expected to be approximately 3.5% (on an average basis) in 2018 as well as in 2019. However, the GDP growth might witness some negative impacts in 2020 because of the weaker growth with respect to the exports related to the resources. However, the business conditions are currently favourable as well as there might be an increase with respect to the deployments in the non-mining business.
Australian Markets Ended Lower
The Australian markets ended the session on December 4, 2018 on a weaker note as S&P/ASX200 closed at 5713.1 which represents the fall of 58.1 points or 1%. Talking about the gainers, St Barbara Limited (ASX: SBM) and Elders Limited (ASX: ELD) ended the session witnessing the rise of 3.912% and 3.07%, respectively. On the other hand, Syrah Resources (ASX: SYR) and Western Areas Limited (ASX: WSA) ended the session by declining 8.033% and 7.627%, respectively.
The stock price of Emerge Gaming Limited (ASX: EM1) witnessed the rise on December 4, 2018. Read the full news here. Norwest Minerals (ASX: NWM) is now trading on Australian Securities Exchange or ASX as it has completed its $6.6 million IPO. Read the full news here.
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