The investors are fearing that there could be economic slowdown moving forward largely because of the macroeconomic factors, as well as geopolitical concerns, might negatively impact the broader economy. The market participants are already aware that Apple Inc (NASDAQ: AAPL) have informed the market players about some of the important numbers for fiscal Q1 2019. Considering the release which was issued, the company expects to generate lower revenues in the quarter as compared to the guidance which was earlier given. This reduction in the revenue expectations might have increased the worries about the weakening of the global economy in the investors’ minds.
Another primary concern which is in the minds of the investors is the slowdown which is being witnessed by the economy of China. This slowdown has further increased the tensions. Therefore, it can be assumed that the investors are being dicey about the investments in the equity markets. The markets are expecting that the Federal Reserve would raise the interest rates twice in 2019. On January 2, 2019, Dow Jones Industrial Average ended the session at 23,346.24 which implies the rise of 18.78 points or 0.081%.
Oil Markets Continue to Key Area Where Investors Would Focus
The oil markets have and would continue to be impacted by the concerns related to the economic slowdown as well as by the tensions of the increased supply. The conditions of the increased supply might impact because the oil demand comes into question if the investors are worried about the global economic downturn. The volatility of the markets is also not healthy for investors and this might lead to a fall in the deployments by them in the equities.
Australian Markets Ended on Stronger Note
The Australian markets have closed in green on January 3, 2019. S&P/ASX200 closed at 5633.4 which implies the rise of 75.6 points or 1.3%. As the investors might be already aware, the strong downtrend was witnessed in the Australian dollar against the United States Dollar. It can be said that the Australian economy might have been witnessing the impacts of the slowdown which is being encountered by the Chinese economy. It can be expected that the slowdown in the Chinese economy has been witnessed largely because of the trade battle with the US. Therefore, the settlement of the trade war would also support the broader Australian economy.
The stocks like Pilbara Minerals Limited (ASX: PLS) and Healius Limited (ASX: HLS) have ended the session on January 3, 2019 by witnessing the rise of 16% and 7.787%, respectively. On the other hand, Super Retail Group Limited (ASX: SUL) and JB Hi-Fi Limited (ASX: JBH) have ended the session on the negative note as these stocks have fallen 5.417% and 4.259%, respectively.
Apple Inc. had reduced the revenues expectations for the fiscal Q1 2019 which might have raised the tensions related to the global downturn. Read the full news here.