Market Update: Dow Jones Ended Lower. Should Investors Worry?

3 min read | January 15, 2019 07:50 PM AEDT | By Team Kalkine Media

It seems like the investors are again worried about the slowdown in the global economic growth as the exports as well as imports data of the Chinese economy has been hinting towards the global downturn. Earlier also the market players were worried about the slowdown in the global economy but later on, these concerns were washed away after strong US jobs report. Moreover, the comments from the Federal Reserve Chairman also supported the market participants’ sentiments as the market players expected that the Federal Reserve would be patient in the hikes of the interest rates.

However, export and import data of China has again increased the worries of the global players about the slowdown which could significantly impact the financial markets as well as the sentiments of the investors. In these types of scenarios, the market participants generally avoid making deployments in the equity markets largely because of the risks which are associated with equities. Some of the market players even consider liquidating their investments which they have made in the equities because of the unfavourable macro-economic conditions. On January 14, 2019, Dow Jones Industrial Average closed the session at 23,909.84 which implies the fall of 86.11 points or 0.36%.

Global Downturn Concerns to Impact Oil Prices as Well

The oil prices have been playing with investors from a long period of time. The volatile oil prices are expected to get negatively impacted by the worries about the global economic slowdown. The slowdown generally impacts the prices of oil largely because the questions related to the demand of oil arises in the minds of the investors. Moreover, the worries about the increased supply also impact the oil markets as a rise in the supply with the lower demand would put downward pressure on oil prices. The oil prices would also be impacted by the news related to the trade wars as the geopolitical tensions are also the primary hurdle to the economic growth. Apart from these factors, the unfavourable momentum in the financial markets also negatively impacts the oil prices.

Australian Markets Ended on Positive Note

The Australian markets ended today’s session on the positive note as S&P/ASX200 closed the session at 5814.6 which implies the rise of 41.2 points or 0.7%. Moving forward, the broader Australian markets would be sensitive to the news related to the macro-economic factors as well as trade wars. The favourable news on the macro-economic front would support the Australian markets. On January 15, 2019, stocks like Navitas Limited (ASX:NVT) and Syrah Resources Limited (ASX:SYR) have closed the session on the positive note by encountering the rise of 12.857% and 10.335%, respectively.

On the other hand, today, the stocks like Ausdrill Limited (ASX:ASL) and Speedcast International Limited (ASX:SDA) have closed the session in red as these stocks have fallen 5.242% and 3.571%, respectively.

LiveTiles Limited (ASX:LVT) had come forward and provided an update about annualized recurring revenue. Read the entire news here.


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