Market Update: Dow Jones Ended The Session In Red. US Federal Reserve Announces Rate Cut

As the market players are aware, global stock markets are generally affected by uncertainties related to the broader macro-economic environment as well as the overall health of the global economy. However, in the current scenario, it can be said that the markets are being influenced by statements made by US Federal Reserve Chairman Jerome Powell. Additionally, Chairman Jerome Powell announced a rate cut by 25 basis points, as expected by the market participants. However, comments by Jerome Powell indicated no further rate cuts moving forward, which shocked the market participants.

The market players are getting worried about the trade battle between the US and China, as such economic uncertainties have the potential to disrupt the prospects of global economic growth. In order to bring stability, the trade war needs to end on a permanent basis. On July 31, 2019, Dow Jones Industrial Average witnessed a fall of 333.75 points or 1.23% to close the session at 26,864.27. Also, on the same day, S&P 500 Index fell by 32.8 points or 1.09% to close the session at 2980.38.

Oil Prices Expected to Be Affected by Macro-Fundamentals

Oil prices are affected by the movement of stock markets as well as by geopolitical conditions. If the trade battle gets worse or if the economic disturbances witness a rise, oil demand might be affected, which could, in turn, influence the oil prices. The health of global economy can also influence the oil prices.

Australian Markets End in Red: S&P/ASX200 Encounters 0.3% Fall

On August 01, 2019, S&P/ASX200 closed in red, depicting a fall of 23.7 points or 0.3% at 6,788.9. Let us now have a look at the performance of some of the stocks on ASX. Downer EDI Limited (ASX: DOW) and Pilbara Minerals Limited (ASX: PLS) closed in green with their stock prices increasing at a rate of 3.463% and 3.191%, respectively. Two stocks that witnessed a decline in stock prices include Janus Henderson Group Plc (ASX: JHG) and Northern Star Resource Ltd (ASX: NST). JHG went down by 12.197% and NST went down by 7.225%.

We will now take a look at some of the important information which has been provided on the platform. Updates on two consumer staples sector stocks – Holista CollTech Limited (ASX: HCT) and Yowie Group Ltd (ASX: YOW) have been provided for the market players. Click here to read the detailed news. Q4FY19 updates on five resource sector stocks – Helios Energy Ltd (ASX: HE8), Hipo Resources Limited (ASX: HIP); Energy Resources of Australia Limited (ASX: ERA), Infigen Energy Limited (ASX: IFN) and Galilee Energy Limited (ASX: GLL) have also been provided for the investors. Click here to read the full news.