Market Update: Dow Jones Ended Weaker. What Happened?

  • Nov 30, 2018 AEDT
  • Team Kalkine
Market Update: Dow Jones Ended Weaker. What Happened?

It seems like the favourable reaction of the market players towards the Chairman of Federal Reserve’s latest comments did not last long. After witnessing the strong uptrend, Dow Jones ended yesterday’s session in red. The index, Dow Jones Industrial Average, settled at 25,338.84 which implies that the index has witnessed the decline of 27.59 points or 0.11% on November 29, 2018. It seems like the investors have again started worrying about the global macroeconomic factors like fluctuations in the oil prices, the tensions related to the trade war as well as the expectations for the slowdown in the global economy. However, the meeting of the US and China is of significant importance to the market players, and their sentiments would be highly sensitive to the same. The escalation of the battle could severely dampen the economic prospects, and the equity markets would also be significantly impacted. Therefore, it would be in the interest of the global economy as well as markets that the meeting ends on the positive note. The latest comments from the Federal Reserve’s chairman have been presumed as dovish by the market players. Thus, it would be reasonable to expect that the central bank of the US would now be raising the rates at a slower pace.

Oil Price Declines: Eyes on Meeting

The oil prices witnessed the decline primarily because of the concerns related to the oversupply situations as well as expectations for the weaker demand. The participants in the oil markets need to wait for the meeting on December 6, 2018 which might help the oil prices. There might be a possibility that in the meeting the production cuts would be discussed. After the production cuts, the oil prices might witness a rise which could help the prices in regaining some momentum. However, some positive momentum might also be witnessed after the G20 meeting if the US and China settle their trade battle. This is because another factor which is impacting the oil prices is the negative momentum in the financial markets. If the meeting ends with the positive outcome, the strength might be witnessed in the financial markets which could support the oil prices. Thus, G20 meeting needs to be closely watched by the market trackers.

Australian markets end lower

It would not be wrong to say that the Australian markets track the footsteps of the US markets. On November 30, 2018, the Australian markets ended the session on the negative note as S&P/ASX200 settled at 5667.2 which implies that the index has fallen 91.2 points or 1.6%. Talking about the stocks which ended the session in green, Aveo Group (ASX: AOG) and St Barbara Limited (ASX: SBM) ended today’s session by witnessing a rise of 4.294% and 4.225%, respectively. On the other hand, stocks like Coca-Cola Amatil Limited (ASX: CCL) and Aristocrat Leisure Limited (ASX: ALL) closed the session by declining 14.455% and 6.997%, respectively.

Also, Myer Holdings Limited (ASX: MYR) released the presentation in which the company stated its focus areas. Read the full news here. The shareholders of Scottish Pacific Group Limited (ASX: SCO) have approved the takeover proposal of the SME Capital Investment III Pty Limited. Read the full news here. Fluence Corporation Limited (ASX: FLC) is expanding its geographical footprints as well as it is also financing its projects. Read the full news here.

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