Market Update: Dow Jones Ends Higher. Should You Be Relieved?

  • Jan 11, 2019 AEDT
  • Team Kalkine
Market Update: Dow Jones Ends Higher. Should You Be Relieved?

It seems like the market players are reacting to the positive news floating in the global equity markets. The trade tensions between the US and China have been impacting the investors’ sentiments from a long time and the efforts are now being made to end with trade battle which could severely impact the global economic growth as well as the financial markets. The equity markets are sensitive to the geopolitical as well as macroeconomic factors. The economic downturn fears rose after Apple Inc. (NASDAQ: AAPL) announced that the revenues for the quarter ended December 31, 2018 would be lower than the expectations.

The sentiments of the investors also get impacted on any negative news related to the trade battle. However, lately, the sentiments of the global investors were supported by the positive comments from the Federal Reserve Chairman.

Earlier, there were worries that the speedy hikes of the interest rates could severely impact the global economic growth and this reason has also impacted the sentiments of the market players. Also, the US President Mr. Donald Trump was opposing the interest rate hikes. However, it needs to be noted that the Federal Reserve has to keep a check on the inflation. On January 10, 2019, Dow Jones Industrial Average ended the session at 24,001.92 which implies the rise of 122.80 points or 0.51%.

Oil Markets to Be Effected by Trade Wars

It can be expected that the oil markets would be sensitive to the movements in the financial markets and any factor which could impact the financial markets could dampen the oil markets as well. Therefore, the trade war related news, information about rate hikes as well as worries about the global economic slowdown could impact both the markets (i.e. oil markets and financial markets). The downturn in the financial markets increases the worries about the global economic slowdown which negatively impacts the oil prices. The fears about the global slowdown increased after the slowdown in the Chinese economy was witnessed. The downturn in the giant economy like China was indeed a matter to worry about.

Australian Markets Ended the Session in Red

The Australian markets closed lower today as S&P/ASX200 closed at 5774.6 which implies the fall of 20.7 points or 0.4%. The market players need to note that the settlement of the trade battle between the US and China would also be beneficial for the Australian markets as well. The stocks like Treasury Wine Estates Limited (ASX: TWE) and Domino’s Pizza Enterprises Limited (ASX: DMP) have ended the session on the stronger note as they have witnessed the rise of 4.247% and 3.154%, respectively.

The stocks like Regis Resources Limited (ASX: RRL) and Pendal Group Limited (ASX: PDL) closed the session in red by falling 4.251% and 3.562%, respectively. Also, CCP Technologies Limited (ASX: CT1) came out with the investor presentation. Read the full news here. GALE Pacific Limited (ASX: GAP) announced that it expects its 1H FY 2019 earnings to be lower than prior corresponding period’s earnings. Read the full news here.


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