The global equity markets are very sensitive to the macro-economic factors and the news relating to the geopolitical factors. If the worries about global slowdown increases, it could weigh over the sentiments of market players which could prompt the investors to avoid making investments in risky assets like equities. Some of the players even decide to liquidate their current holdings which negatively impacts the broader momentum of equity markets.
In the present scenario, the market players are worried as the US President might increase the tariffs on the exports from China. Not only this, the US President can also place tariffs on additional goods. An increase in the trade tensions between the US and China could significantly impact the broader equity markets and can be a primary reason for the global economic slowdown. If the situation between the US and China becomes worse, it could significantly derail the sentiments of market players which could lead to a global downturn in the equity markets. On May 3, 2019, Dow Jones Industrial Average ended the session in green as the index got closed at 26,504.95 which implies a rise of 197.16 points or 0.75% on an intraday basis. Also, on the same day, S&P 500 closed in green as the index got closed at 2,945.64 which reflects a rise of 28.12 points or 0.96% on an intraday basis.
Oil Prices Might Get Affected by Increased Global Worries
As the market players are aware, the oil prices are very sensitive to the global factors and higher risks to the overall health of the global economy can significantly influence oil prices. If the worries about trade battle between the US and China increases, it could significantly impact the overall global economy which could affect the oil demand. Thus, the oil prices can get influenced.
Australian Markets Ended Lower: What Investors Should Know?
Today (i.e. May 6, 2019), the Australian markets ended the session lower as S&P/ASX200 got closed at 6,283.7 which reflects a fall of 52.1 points or 0.8% on an intraday basis. The Australian equities might also witness the negative impacts if the trade battle between the US and China gets worse. The global downturn in the economic growth might weigh over Australian equity markets. On May 6, 2019, Domain Holdings Australia Limited (ASX: DHG) and Regis Resources Limited (ASX: RRL) ended the session in green as the prices of these stocks witnessed a rise of 2.827% and 2.535%, respectively.
On the other hand, CIMIC Group Limited (ASX: CIM) and Bellamy’s Australia Limited (ASX: BAL) got ended in red as the prices of these stocks fell by 7.074% and 6.986%, respectively. We would now be looking at some of the important news. Magellan Financial Group Limited (ASX: MFG) came forward and made an announcement about its AUM number as of April 30, 2019. To read the news, please click here. National Tyre & Wheel Limited (ASX: NTD) gave FY 2019 trading update. In order to go through the entire news, please click here.
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