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Trade battle between the US and China has the potential to disrupt the global growth momentum and market players are fearing that the war could act as a threat to the global economic growth. A rise in economic uncertainties has the potential to impact the sentiments of global market players, and they might decide to sell their holdings in equities. However, market participants are now expecting that there are chances that China wonât be using its currency when it comes to trade battle with the US. The trade battle needs to settle down, as an escalation could be detrimental to the health of the global economy. The war could negatively impact the broader business environment and can also weigh over the business activities of global companies.
The Federal Reserve recently announced a rate cut of 25 basis points. The decision of Chairman Jerome Powell has the potential to affect the broader stock markets. On August 6, 2019, Dow Jones Industrial Average ended the session in green, as the index witnessed a rise of 311.78 points or 1.21% on an intraday basis to close the session at 26,029.52. On the same day, S&P 500 Index encountered a gain of 37.03 points or 1.30% on an intraday basis to settle at 2881.77.
Oil Prices Remain Sensitive to Macro-economic Factors
Oil prices are very sensitive to the overall health of the global economy, and an increase in economic uncertainties can affect the sentiments of investors. However, it can be said that, in the present environment, the trade battle is the primary concern among investors. The global economic slowdown can question the demand for oil.
Australian Markets Ended in Green: S&P/ASX200 Encounters Increase of 0.6% Intraday
Since the trade battle has the potential to disrupt the global economic growth, it can also weigh over the performance of broader Australian economy, which could influence the performance of equities. The settlement of the trade battle could positively impact the broader business environment. On August 7, 2019, S&P/ASX200 witnessed a rise of 41.4 points or 0.6% on an intraday basis to end the session at 6,519.5. Also, on the same day, All Ordinaries encountered an increase of 42 points or 0.6% to settle at 6,588.5.
We would now have a look at the performance of some stocks on ASX. On August 7, 2019, Resolute Mining Limited (ASX: RSG) ended the day by rising 8.707% to close at A$2.060 per share, while Pinnacle Investment Management Group Limited (ASX: PNI) encountered an increase of 8.431% to settle at A$4.630 per share.
On the other hand, Fortescue Metals Group Ltd (ASX: FMG) and Appen Limited (ASX: APX) witnessed a fall of 3.292% and 3.282%, respectively, on an intraday basis. We have written some crucial information about the stocks which investors need to know about. We have provided information on four real estate and related stocks. To have a look, please click here.
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