Market Update: Global Markets Got Severely Impacted, Raising Concerns And Outflows

  • Oct 11, 2018 AEDT
  • Team Kalkine
Market Update: Global Markets Got Severely Impacted, Raising Concerns And Outflows

US Markets Meltdown, Indices Fell Significantly

As the sell-off has been witnessed in the markets globally, the US indices have also joined the group. On October 10, 2018, major indices tumbled with Nasdaq Composite ending the trading session lower at $7,422.05, representing the decline of 315.97 points or 4.08%. The primary factors which were responsible for the strong sell-off in the US stocks were the decline in the technology stocks. The Trump administration has been continuously throwing up cards which are making the global markets tumble. The investment in the US companies by the foreign ones would now be exposed to further restrictions.

As per the US Treasury, the federal panel would now have the authority to review the investment in the US companies which are beyond controlling stakes as well as takeovers. This means that any investments from the foreign companies which would entitle that company to have access to nonpublic technical information, place in the decision-making process as well as on the board would also be covered by the federal panel.

The expansion would include the number of industries like computers, telecommunications as well as semiconductors. This recent step by the Trump administration can be considered to punish China in regard to the trade practices. The administration is in the process of restricting China from getting access to technologies like 5G. It seems like the market participants need to get habitual of these types of news as the trade wars between the US and China won’t be coming to an end in the near term.

With Global Sell-offs, Australian Markets Are No Exception

The markets globally have been witnessing a strong downturn and it is taking the Australian markets along with it. S&P/ASX200 ended the session lower at $5883.8 which implies the fall of 166 points or 2.8%. The primary reasons for the wipeout are global outflows from the markets, higher yields on the bonds as well as increasing tensions between the US and China. The International Monetary Fund has already warned that the escalation would be impacting the Australian economy as well.

Despite the decline in the Index, Evolution Mining Limited (ASX: EVN) and St Barbara Limited (ASX: SBM) managed to witness an upward momentum as they ended the day by gaining 6.273% and 6.268%, respectively. However, Afterpay Touch Group Limited (ASX: APT) and Wisetech Global Limited (ASX: WTC) ended the day lower by witnessing the fall of 11.054% and 10.463%, respectively. Apart from them, Pendal Group Limited (ASX: PDL) also fell by 3.129% even though its FUM for the September quarter recorded an increase of $1.6 billion on the sequential basis. For more information click here.

Fortescue Metals Group (ASX: FMG) has made an announcement regarding its buy-back plan for an amount of up to $500 million. The stock ended the session on the positive note as it has advanced 2.452%. For more information click here.

What’s Going on In European Markets?

The European markets have also witnessed significant fall feeling the global pressures in the equity markets. The primary sectors which witnessed the strong downtrend were basic resources as well as technology. However, most of the sectors witnessed the negative impacts primarily because of the rising tensions between the US and China raising concerns over economic growth. However, increased rates on the debt products were also the primary contributor. The strong downtrend in the luxury stocks also impacted the European markets.

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