It can be assumed that the global stock markets in the entire 2018 indeed witnessed the impacts of the geopolitical events as well as other macroeconomic variables. The trade war concerns, as well as other macroeconomic level news, have impacted the investors’ sentiments in the majority of 2018. Another key point which the market players need to consider is the decision of the Federal Reserve related to the interest rates. In December 2018, the US central bank had conducted a meeting in which it decided to give the US economy a rate hike of 25 basis points or bps which was largely anticipated by the market players.
However, in December 2018, the market players were more eager to understand the view of the Federal Reserve about the interest rate hikes in 2019. As per the December 2018 meeting, the broader market is assuming that the US central bank might raise the rates twice in 2019. Another thing on which the investors are presently focusing happens to be the information related to the trade battle between the US and China. Notably, on December 31, 2018, Dow Jones Industrial Average ended the session at 23,327.46 which reflects that the index has witnessed the rise of 265.06 points or 1.15%.
Should Investors Be Worried About the Oil Markets?
The oil markets have been witnessing the impacts of the tensions related to the global economic slowdown as well as the worries about the increased output levels. Moving forward, the sentiments of the oil markets participants would be sensitive to the news related to the trade wars as well as any information regarding the downturn in the global economy. The global factors which have the potential to negatively impact the economy can put the downward pressure on the oil prices moving forward primarily because if the global downturn occurs, it would increase the worries about the oil demand.
Additionally, as the market players must be quite aware, the movement in the stock markets also have the potential to affect the oil markets. It cannot be ignored that the US stock markets would also be sensitive to the earnings season moving forward.
Australian Markets Ended the Session in Red
On January 2, 2019, the Australian markets have ended the session in red. S&P/ASX200 closed at 5557.8 which implies the fall of 88.6 points or 1.6%. It can be assumed that the trade war between the US and China has negatively impacted the Chinese economy. The negative momentum in the Chinese economy has the potential to impact the Australian markets as well. On January 2, 2019, stocks like Healius Limited (ASX: HLS) and Bellamy’s Australia Limited (ASX: BAL) ended today session by rising 9.417% and 3.83%, respectively.
On the other hand, the stocks like Speedcast International Limited (ASX: SDA) and Infigen Energy (ASX: IFN) ended session by falling 5.498% and 5.376%, respectively. An approval has been given by Israeli Parliament with respect to medicinal cannabis exports which could support Creso Pharma Limited (ASX: CPH). Read the full news here.
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.
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.