Market Update: Dow Jones Closes In Red.Concerns About Global Slowdown Looming

  • May 07, 2019 AEST
  • Team Kalkine
Market Update: Dow Jones Closes In Red.Concerns About Global Slowdown Looming

As the market players are aware, the equity markets are very sensitive to the overall health of the global economy and any sort of disturbances which have the potential to negatively impact the global growth can disrupt the broader momentum of equity markets. In the present scenario, there are expectations that the US President might go for increasing the tariffs on the exports from China. The trade battle between the US and China has the potential to significantly impact the global business environment which could weigh over the prospects of economic growth. If the worries about the global slowdown increases, it might lead to the negative momentum in the equity markets.

The geopolitical worries can have a significant negative impact on the minds of global market players and, thus, they might decide to liquidate their holdings in equities and can make deployments towards the safer instruments. This has the potential to disrupt the overall momentum of the equity markets. Yesterday (i.e. May 6, 2019), Dow Jones Industrial Average got closed at 26,438.48 which implies a fall of 66.47 points or 0.25% on an intraday basis. On the same day, S&P 500 index ended at 2,932.47 which reflects a fall of 13.17 points or 0.45% on an intraday basis.

Oil Prices To Remain Sensitive Health of Global Economy

The oil prices are expected to get influenced by global macro-economic factors and the rise in global growth worries can put the demand of oil in question. If the oil demand gets impacted because of the unfavourable economic conditions, the oil prices can also get influenced. The permanent settlement of trade battle between the US and China is very important in order to bring stability in the global economic environment. This settlement could also improve the momentum of broader equity markets.

Australian Markets Got Closed in Green: A Brief Overview

The Australian markets get influenced by the overall momentum of the global equity markets. If the worries about the global slowdown increases, it could affect the momentum of Australian markets. Let us now have a look at some of the movements in stock prices. Fortescue Metals Group Ltd (ASX: FMG) and WiseTech Global Limited (ASX: WTC) got closed in green as the prices of their stocks witnessed the rise of 6.294% and 4.864%, respectively.

On the other hand, GrainCorp Limited (ASX: GNC) and NRW Holdings Limited (ASX: NWH) got closed in red as the stock prices of these companies witnessed the fall of 6.963% and 5.204%, respectively on an intraday basis. We will now be looking at some of the important news. Credit Corp Group Limited (ASX: CCP) came forward and made an announcement about the closure of Share Purchase Plans (or SPP). To read the full news about this, please click here. Also, Shaver Shop Group Limited (ASX: SSG) provided a trading update as well as Market Eye Investor Conference Presentation in which there was information about company overview, outlook and drivers of growth. To read the full information, please click here.

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