Market Update: Dow Jones Ended Lower On May 17, 2019. Trade Worries - A Key Concern

4 min read | May 20, 2019 06:33 AM EDT | By Team Kalkine Media

As the market players are aware, the global equity markets are very sensitive to the macro-economic conditions and to the overall health of economic environment. In the present scenario, the global market players are closely tracking the news related to the US and China trade battle as the geopolitical worries have the potential to disrupt the trade environment. The uncertainties with respect to the trade environment can increase the fear in the minds of global investors and, as a result, they might choose to liquidate their holdings in the equities. In such a situation, the global equity markets generally witness an unfavourable momentum.

However, if the trade battle between the US and China settles down on the permanent basis, it might help to stabilise the global stock markets. If the geopolitical concerns get reduced, it might lower the worries about the global economic slowdown. On May 17, 2019, Dow Jones Industrial Average ended the session at 25,764 which implies a fall of 98.68 points or 0.38% on an intraday basis. On the same day, S&P 500 Index got closed in red as it witnessed a fall of 16.79 points or 0.58% (on an intraday basis) and stood at 2,859.53.

Oil Prices Remain Sensitive to Macro-economic Conditions

The oil prices are influenced by several macro-economic conditions and by the news related to the US and China trade battle. Since rise in the trade battle impacts the overall economic growth and it also increases worries about the global economic slowdown, the oil demand comes into question. If the oil demand gets affected, the oil prices can also be influenced. When the economic uncertainties rise, the stock markets are negatively impacted. It is important for the investors to know that the oil prices also get influenced by the movement of equity markets.

Australian Markets Ended in Green: S&P/ASX200 Rose by 1.7%

The Australian markets might also be affected by the global environment and by the behaviour of global investors. A rise in the economic uncertainties can hamper the global growth prospects and can negatively impact the Australian equity markets. Today (i.e. May 20, 2019), S&P/ASX200 got closed in green as the index witnessed a rise of 110.8 points or 1.7% on an intraday basis and ended at 6,476.1. We would now have a look at how the stocks have performed today. NIB Holdings Limited (ASX: NHF) and Medibank Private Limited (ASX: MPL) got ended in green as their stock prices have witnessed a rise of 15.789% and 11.458%, respectively on an intraday basis.

On the other hand, Webjet Limited (ASX: WEB) and Nearmap Limited (ASX: NEA) got ended in red as their stock prices witnessed a fall of 7.738% and 5.744%, respectively. Coming to some of the important news, Regis Healthcare Limited (ASX: REG) came forward and made an announcement about the appointment of a New CEO (or Chief Executive Officer) and MD (or Managing Director). To read the full news about this, please click here.

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