The stock markets are witnessing downtrend, and this has been impacting the investorsâ minds and sentiments which could prompt the investors to either liquidate their present holdings or avoid deploying the investable capital towards the equity markets. On December 18, 2018, Dow Jones Industrial Average ended in red zone which has the potential to further deteriorate the sentiments of the global investors. The market participants are also focusing on the Federal Reserveâs decision about the interest rates as it could also affect the markets. The meeting of the Federal Reserve would also contain the information related to the interest rate movements for FY 2019.
It would be important to know that the broader markets are expecting that the central bank of the United States would go for the rate hike. However, one thing that the investors should also know that the rate hikes could also impact the broader economy and the market players are already concerned that the global economic growth is witnessing unfavourable momentum. The investors are in the position in which deployments in the equity markets is indeed a tough choice. On the one hand, there are worries about the rate hike announcement by the Federal Reserve and on the other hand, the trade battle fears which could also slow down the economic growth.
Oil Markets are Still in Pressure: What Investors Need to Know
The oil markets are still witnessing the impacts of the tensions related to the weaker economic growth which could result in lower demand of oil. The participants in the oil markets have been facing a lot of hurdles lately. Earlier, there were hopes that the production cuts might help the oil price as well as investorsâ sentiments. However, considering the present scenario, the oil prices continue to weigh over the investorsâ sentiments. It is also important to know that the financial market also affects the oil markets. A downturn in the financial markets might also lead to a fall in oil prices. Thus, the Federal Reserveâs decision with respect to the interest rates might also affect the oil markets as the interest rate decision would affect the equity markets.
When the financial markets fall, some of the market participants expect that the global economy is in danger which further impacts the oil prices.
Australian Markets Ends Lower
The Australian markets ended the session on the negative note. On December 18, 2018, S&P/ASX200 closed at 5589.5 which implies the fall of 68.8 points or 1.2%. Talking about the gainers, CSR Limited (ASX: CSR) and TPG Telecom Limited (ASX: TPM) have ended the session by encountering a rise of 4.833% and 3.692%, respectively. On the other hand, stocks like Mayne Pharma Group Limited (ASX: MYX) and WorleyParsons Limited (ASX: WOR) ended the session on December 18, 2018 by falling 6.452% and 6.225%, respectively.
Mobecom Limited (ASX: MBM) had made an announcement which states that it had acquired 80% holding in Paid by Coins. Read the full news here. Also, Kibaran Resources Limited (ASX: KNL) came forward and made an announcement related to the international patent which it had received for EcoGraf purification process flowsheet. Read the full news here.
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