As the market players are aware, the performance of global markets are sensitive to the macro-economic variables and to the news related to the US and China trade battle. However, it can be said that, in the present scenario, the market players should closely track the news related to the trade war as these news can influence the movement of stock markets. An increase in trade war concerns could weigh over the performance of global markets and can also derail the prospects of global economic growth.
Any positive news related to the US and China trade battle favourably impacts the US stock markets. If the trade battle ends on the permanent basis, it could decrease the fears of global economic slowdown and the investors might decide to make deployments towards equities which could positively impact the stock markets. The global economic environment is sensitive to the geopolitical factors.
On Friday (i.e. May 24, 2019), Dow Jones Industrial Average got ended at 25,585.69 which implies a rise of 95.22 points or 0.37% on an intraday basis. Also, on the same day, S&P 500 Index got ended at 2,826.06 which reflects an increase of 3.82 points or 0.14% on an intraday basis.
Trade Battle Could Influence Oil Prices As Well
The trade war between the US and China could influence the oil prices as these worries could impact the global economic growth. The geopolitical tensions have the potential to disrupt the prospects of growth and, as a result, the oil demand is questioned. If the oil demand is expected to fall, it might influence the oil prices as well. Another factor which could affect the oil prices is the movement of the equity markets.
Australian Markets Closed in Red: S&P/ASX200 Falls 0.1%
The Australian markets might get impacted if the worries about the global growth increases. Also, the performance of the Australian equities is sensitive to the news about the trade battle between the US and China. Today (i.e. May 27, 2019), S&P/ASX200 got ended at 6451.9 which implies a fall of 4.1 points or 0.1% on an intraday basis. We would now have a look at the performance of some stocks.
Today, Vocus Group Limited (ASX: VOC) and Appen Limited (ASX: APX) got ended in green as the prices of these stocks have witnessed a rise of 16.967% and 4.583%, respectively on an intraday basis. On the other hand, the stocks like Seven West Media Limited (ASX: SWM) and Elders Limited (ASX: ELD) got ended in red as the prices of these stocks have fallen by 5.607% and 4.769%, respectively.
Suncorp Group Limited (ASX: SUN) had come forward and made an announcement about the resignation of its CEO (or Chief Executive Officer) and Managing Director (or MD). To read the entire news about the same, please click here. Also, Venture Minerals Limited (ASX: VMS) had made an announcement that they have wrapped up the institutional entitlement offer. To read the full news, please click here.