Market Update: Dow Jones Ended In Red. Investors Eye Fed Chairman’s Semi-Annual Testimony To The U.S Congress

The U.S stocks witnessed a decline as a result of pressure from drop in shares of Apple Inc along with a dip in hopes regarding expected aggressive interest rate cut by the Federal Reserve later in July. The shares of Apple Inc are further expected to face fundamental deterioration in the next 6 to 12 months. Pursuant to the strong U.S jobs data, hopes regarding sharp rate cut at the central bank’s policy meeting on July 30^th and July 31^st have faded.

During the Federal Reserve Chairman’s semi-annual testimony to the U.S Congress on July 10^th and July 11^th, the investors may get an opportunity to gauge the near-term monetary policy thinking. Market participants are also eyeing the Central Bank’s June meeting minutes, expected to release on Wednesday.

On July 08, 2019, Dow Jones Industrial Average ended the day in red, depicting a fall of 115.98 points or 0.43%, with the index closing at 26,806.14. The S&P 500 index was also down by 14.46 points or 0.48%, closing at 2,975.95.

Australian Markets Ended in Red: S&P/ASX200 Dips 0.1%

The Australian economy is expected to perform reasonably decent, with growth around the trends. Due to protracted period of low-income growth and declining housing prices, consumption growth in Australia has been subdued over the year to the March quarter. This is expected to be offset by a pick-up in activity in the resources sector due to increase in the prices of Australia’ exports and increased investment in infrastructure.

Although inflationary pressures remain subdued, it is expected to increase in the June quarter due to increase in petrol prices. The underlying inflation in 2020 is expected to be around 2% and a little higher after that. Despite strong employment growth and labour force participation at a record level, there has been a slight increase in the unemployment rate. Overall growth in wages also remained low despite strong employment growth over past year which helped grow wages in the private sector.

The Reserve Bank Board recently decided to lower the cash rate to 1%, down by 25 basis points. The decrease in cash rate is expected to aid in faster reduction of unemployment with progress towards the inflation target.

On July 09, 2019, S&P/ASX200 closed in red depicting a fall of 6.5 points or 0.1% at 6,665.7. Now let us have a look at the performance of some of the stocks on ASX. Breville Group Limited (ASX: BRG) and Pilbara Minerals Limited (ASX: PLS) closed in green with their stock prices witnessing a rise of 5.98% and 5.10%, respectively. Meanwhile, Afterpay Touch Group Limited (ASX:APT) and Nufarm Limited (ASX: NUF) ended the day’s session in red, both with a fall of 4.85%.

We will now take a look at some of the important news of the day. Key business updates on AHAlife Holdings Limited (ASX: AHL). Click here for reading the full news. Also, recent updates on four metals & mining stocks – Greenland Minerals Ltd (ASX: GGG); Millennium Minerals Limited (ASX: MOY); Elementos Limited (ASX: ELT) and ATC Alloys Limited (ASX: ATA). To read the full news, please click here.