Market Update: A Quick Look At The US Markets

December 11, 2018 07:59 PM AEDT | By Team Kalkine Media
 Market Update: A Quick Look At The US Markets

The equity markets have been witnessing the negative impacts from the global macroeconomic factors which are also impacting the sentiments of the investors. The investors have all the reasons to worry as the arrest of the CFO of Huawei has increased the worries related to the trade wars between the US and China. The market players were already tensed up because of the trade battle as this might lead to the slowdown in the global economic growth. On December 10, 2018, Dow Jones Industrial Average ended the session at 24,423.26 which implies a rise of 34.31 points or 0.14%. At present, it can be assumed that the investors are extremely worried about the weaker economic growth which might result in a reshuffling of the portfolios.

The equity markets are expected to remain sensitive to the news related to the trade wars. Another factor which was seen looming over the investors’ minds are the worries relate to the inverted yield curve. It would not be wrong to say that the inverted yield curve is one of the things which the market players hate to experience as this might lead to a recession.

Lots of Factors Could Impact Oil Prices

While there is a lot going on in the equity markets, the investors are also concerned about the oil prices. The participants in the oil markets have earlier seen a decline in the oil prices because of the worries related to the global slowdown in the economic growth coupled with the worries related to increased supply. However, it can be assumed that when the cuts in the production levels were announced, the sentiments of the market players were helped. But the participants in the oil markets are still worried about the impacts of the unfavourable momentum in the stock markets on the oil markets. Moreover, the downturn in the global economy would also lead to slower demand of oil thereby, impacting the prices. The uncertainty in the stock markets has placed the investors in the difficult position.

Australian Markets Ended the Session Marginally Higher

The markets in Australia is expected to remain sensitive to the news of the global macro factors. If the strong downturn is experienced in the global markets, there is a high probability that the Australian markets would also be witnessing the impacts. Additionally, the escalation in the trade battle would also be impacting the Australian markets. On December 11, 2018, the Australian markets managed to close in green. S&P/ASX200 ended the session at 5575.9 which implies a rise of 23.4 points or 0.4%. Talking about the gainers, New Hope Corporation Limited (ASX:NHC) and TPG Telecom Limited (ASX:TPM) closed the session by rising 7.937% and 5.707%, respectively. We will now have a look at the stocks which have declined. Sigma Healthcare Limited (ASX:SIG) and QBE Insurance Group Limited (ASX:QBE) ended the session by declining 6.897% and 4.139%, respectively.

Codan Limited (ASX:CDA) has published its CEO connect presentation. Read the full news here. Medigard Limited (ASX:MGZ) has explained its strategy in regard to the capital raising. Read the full news here.

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