The global stock markets are very sensitive to the macro-economic variables and, as the market players are aware, in the present scenario, it can be assumed that the equity markets are influenced by the news related to the US and China trade war. The war has the potential to significantly impact the global growth and can also weigh over the performance of stock markets. If economic uncertainties increase, the market players might decide to avoid making deployments of the capital towards risky assets like equities and, thus, the stock markets experience a negative momentum.
However, if the worries related to the global slowdown decreases, it might help in the revival of the sentiments of market players. Also, the reduction in global uncertainties positively impacts the stock markets. Therefore, it can be said that if the trade battle between the US and China settles down, it could help in reducing the fears of global slowdown to a large extent. Yesterday (i.e. May 22, 2019), Dow Jones Industrial Average ended in red as the index was wrapped up at 25,776.61 which implies a fall of 100.72 points or 0.39% on an intraday basis. Also, S&P 500 Index got closed at 2,856.27 which reflects a decline of 8.09 points or 0.28%.
Oil Prices To Get Influenced by US and China Trade Battle
The oil prices are affected by the macro-economic variables and by the movement of stock markets. Therefore, it can be said that the oil prices might be influenced by global uncertainties and by the US and China trade tensions. If the US and China trade battle gets worse, it could be detrimental to the global growth prospects and can influence the oil demand which could, in turn, affect the oil prices.
Australian Markets Ended in Red: S&P/ASX200 Fall by 0.3%
The global uncertainties and the US and China trade battle are the factors which could influence the momentum of the Australian equity markets. If the worries about the global slowdown increases, it could weigh over the performance of the Australian equities. Today (i.e. May 23, 2019), S&P/ASX200 got ended at 6491.8 which implies a fall of 18.9 points or 0.3% on an intraday basis. Coming to the performance of stocks, Aristocrat Leisure Limited (ASX: ALL) and Charter Hall Long Wale REIT (ASX: CLW) got closed in green on May 23, 2019 as their stock prices have witnessed a rise of 7.089% and 6.593%, respectively.
On the other hand, Orocobre Limited (ASX: ORE) and Galaxy Resources Limited (ASX: GXY) got ended in red as their stock prices have witnessed a fall of 6.183% and 6.145%, respectively. We will now have a look at some of the crucial news. 5G Networks Limited (ASX: 5GN) came forward and made an announcement that they have increased the debt facility with CBA to $7.2 million. To read the entire news about this, please click here. Also, Wattle Health Australia Limited (ASX: WHA) provided the update about Corio Bay Dairy Group. To read, please click here.
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