Not so long ago, the global market participants were having the fears of the global economic slowdown which were impacting the global financial markets. Also, the market participants were expecting a slower pace of rate increases than hinted by the US Federal Reserve in their December 2018 meeting (when the central bank raises the rates by 25 basis points). However, it can be assumed that some of the investors can now take the sigh of relief as the concerns of the global economic downturn seem to fade. However, it is to be noted that the concerns of the economic slowdown are fading and have not vanished at all as still, there are worries. The jobs report for the month of December 2018 was significantly strong which hints that the worries about slowdown have now started to fade.
Additionally, the comments of the US Federal Reserve’s chairman further strengthened the investors’ sentiments about the US economy. The market players are now expecting that the US Federal Reserve would be patiently raising the rates. This sort of news from the Federal Reserve was needed by the market players. On January 4, 2019, Dow Jones Industrial Average ended the session at 23,433.16 which implies the rise of 746.94 points or 3.29%.
What Could Help Oil Prices?
The oil prices were earlier weighed by the concerns about the global economic slowdown as these situations increase the worries about the oil demand. In addition, it can also be assumed that the oil prices are sensitive to the movement in the financial markets and a fall in the equity markets also lead to a decline in the oil prices. However, the oil prices are also impacted by the geopolitical worries like trade wars. However, the efforts are going on which are focusing on the settlement of the trade fight between the US and China. If these efforts could result in the permanent settlement of the trade fight, the global financial markets would be helped which could also support the oil prices.
Australian Markets Ended in Green
On January 7, 2019, the Australian markets closed in green as S&P/ASX200 ended the session at 5683.2 which reflects the rise of 63.8 points or 1.1%. It can be assumed that the Australian markets were supported by the strong performance of the Dow Jones Industrial Average on Friday i.e. January 4, 2019. The stocks like Emeco Holdings Limited (ASX: EHL) and Syrah Resources Limited (ASX: SYR) have ended today’s session by rising 10.29% and 9.772%, respectively.
On the other hand, the stocks like Healius Limited (ASX: HLS) and Northern Star Resources Limited (ASX: NST) have closed the session by falling 6.182% and 3.296%, respectively. Also, The Environmental Group Limited (ASX: EGL) had come forward to announce the plans for acquiring RCR Energy Service’s assets. Read the full news here. 4DS Memory Limited (ASX: 4DS) had responded to the queries of ASX which were related to the volumes as well as price. Read the full news here.
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