It can be assumed that the equity markets are presently witnessing the global impacts as well as macroeconomic pressures leaving the investors in the dicey position. The market players need to factor in all sorts of macroeconomic factors in their decision-making process when it comes to making investments. It can also be said the market participants are also a bit concerned about the Federal Reserve decision hints. As per the December 2018 meeting, the market players are of the view that the Federal Reserve would go with two hikes in the entire 2019 while earlier there were expectations of three rate hikes. Even though it represents that the Federal Reserve is raising the rates at the slower pace, it seems like the investors were hoping that the Fed would raise the rates even slower.
It is also expected that the moving forward the movement in the US markets would be affected by the earnings season which would commence soon. Talking about the earnings season, the key point of interest lies in the companies’ expectations about future performance. Needless to say, the market participants are also hoping that the trade tensions between the US and China need to end, as these global disturbances can derail the global growth prospects. On December 28, 2018, Dow Jones Industrial Average ended at 23,062.40 which implies the fall of 76.42 points or 0.33%.
What Can Oil Markets Witness Moving Forward?
The oil prices have remained under the pressure in the past few months because of the worries about the higher levels of the supply as well as tensions about the weaker demand. The demand concerns were seen because of the tensions related to the global economic slowdown as the financial markets were also witnessing in the unfavourable momentum. Moving forward, the oil prices would continue to be sensitive to the stock market’s movements as well as macroeconomic factors. If the stock markets witness favourable momentum and the tensions related to demand also gets reduced, the oil prices might be helped.
Australian Markets Ended Marginally Lower
On December 31, 2018, the Australian markets ended the session slightly lower. S&P/ASX200 closed at 5646.4 which implies the fall of 7.9 points or 0.1%. Moving forward, the movement in the Australian stock markets would be sensitive to the global factors as well as the news related to trade wars. If trade wars end, the Australian markets would also be supported.
Let us have a look at the stocks which gained today. On December 31, 2018, Infigen Energy (ASX: IFN) and Syrah Resources (ASX: SYR) ended the session by witnessing the rise of 4.494% and 4.152%, respectively. On the other hand, Healius Limited (ASX: HLS) and oOh! Media Limited (ASX: OML) ended today’s session by falling 4.701% and 4.202%, respectively.
Rey Resources Limited (ASX: REY) had made an announcement that it had signed a letter of intent with Doriemus PLC. Also, Speedcast International Limited (ASX: SDA) had made an announcement that its director has resigned.
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