Market Update: Dow Jones Encounters A Marginal Fall. Focus Should Be On The US-China Trade Battle

3 min read | July 31, 2019 12:11 PM BST | By Team Kalkine Media

Global markets are extremely sensitive to macro-economic factors, as well as to geopolitical conditions. A rise in economic uncertainties could pose a threat to the momentum of global growth and can also weigh over the sentiments of market players. These factors might prompt the investors to sell off their existing holdings in equities and deploy their capital towards assets, which are less risky. The trade battle between the US and China has the potential to dent the prospects of global growth. Therefore, the settlement of the war is very important as it can bring stability in broader stock markets.

However, apart from the trade battle, it looks like the US markets are being affected by the news related to the Federal Reserve meeting. The earnings season also holds significance and investors should also track the same. On July 30, 2019, Dow Jones Industrial Average encountered a fall of 23.33 points or 0.09% to close the session at 27,198.02. Also, on the same day, S&P 500 Index witnessed a fall of 7.79 points or 0.26% on an intraday basis to close the session at 3013.18.

Oil Prices Might Be Influenced By The US-China Trade Tensions

Overall health of the global economy, as well as the geopolitical conditions are the primary factors which could influence the movement of oil prices. These factors have the potential to affect the demand for oil and, as a result, the prices of oil also get influenced. The oil demand can also get affected if the trade battle between the US and China gets worse.

Australian Markets Ended in Red: S&P/ASX200 Falls By 0.5% Intraday

Generally, the Australian markets get negatively impacted by unfavourable geopolitical conditions and by rising tensions about the global slowdown. If the trade battle between the US and China gets worse, the momentum of global growth can witness the negative impacts, which could also be detrimental to the health of the Australian economy. On July 31, 2019, S&P/ASX200 ended the session in red as the index witnessed a fall of 32.5 points or 0.5% on an intraday basis to close the session at 6812.6 while, on the same day, All Ordinaries fell by 31.6 points or 0.5% to settle at 6896.7.

Coming to the performance of the stocks, IPH Limited (ASX: IPH) witnessed a rise of 4.642% to close the session at A$8.340 per share and St Barbara Limited (ASX: SBM) encountered a rise of 3.933% to close the session at A$3.700 per share. On the other hand, Adelaide Brighton Limited (ASX: ABC) witnessed a significant fall of 18.056% to close the session at A$3.540 per share while CYBG Plc (ASX: CYB) fell by 13.408% to settle at A$3.100 per share.

We have provided some critical information related to some stocks for the investors. Not so long ago, we have provided updates related to HLS, VRL, CCP and OMH. To have a look, please click here.


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