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Global stock markets are negatively impacted by the unfavorable news related to the US and China trade battle. A rise in global disturbances might prompt the market players to unload their equity holdings and deploy investable capital in the safer instruments. The US President announced that there would be 10% tariff on $300 billion of Chinese products. It can be said that, as a result of this news, tensions about the global economic slowdown started to emerge in the minds of the global market players.
The escalation in the trade battle between the US and China could dent the prospects of the global economic growth and can negatively impact the overall health of the global economy. Additionally, it can influence the broader business environment. On August 1, 2019, Dow Jones Industrial Average ended the session in red as the index witnessed a fall of 280.85 points or 1.05% on an intraday basis to close at 26,583.42. On the other hand, S&P 500 Index was closed at 2,953.56 which reflects a decline of 0.90% or 26.82 points on an intraday basis. The broader stock markets are very sensitive to the geopolitical conditions.
Can Macro-Economic Factors Influence Movement in Oil Prices?
Overall health of the global economy, geopolitical conditions as well as macro-economic factors have the potential to affect the oil prices. In the event of global economic slowdown, the oil demand comes into question and, as a result, the oil prices are affected. The movement of equity markets can also influence the oil prices. In order to bring stability in the broader stock markets, the trade battle between the US and China needs to be settled down.
Australian Markets Ended Lower: S&P/ASX200 Settles by Falling 0.3%
The Australian markets can also get negatively impacted in the event of global economic downturn or if the economic disturbances increase. The performance of Australian economy can be affected by the trade war escalation which could, in turn, influence the broader momentum of Australian stock markets. On August 2, 2019, S&P/ASX200 witnessed a fall of 20.3 points or 0.3% on an intraday basis to close the session at 6,768.6 and All Ordinaries ended the session at 6,846.1 which implies a fall of 25.8 points or 0.4% on an intraday basis.
Let us now have a look at the performance of some stocks on ASX. On August 2, 2019, Saracen Mineral Holdings Limited (ASX: SAR) and Resolute Mining Limited (ASX: RSG) witnessed a rise of 10.864% and 10.714%, respectively on an intraday basis. On the other hand, Fortescue Metals Group Ltd (ASX: FMG) encountered a fall of 6.143% to close the session at A$7.640 per share while GrainCorp Limited (ASX: GNC) closed at A$8.130 per share after witnessing a fall of 5.355% on an intraday basis.
We have written some important information on some of the leading banks of Australia. The banking stocks on which information has been provided are BOQ, ANZ, CBA, WBC and NAB. To have a look at the same, please click here.
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