The equity markets are very sensitive to the overall health of the global economy and recently the market players came to know that the Federal Reserve won’t be going for a rate cut. In the recent meeting of US Federal Reserve, the central bank kept the interest rates on hold and this move was broadly anticipated by most of the market participants. Tracking the meeting of the US Federal Reserve generally gives the broad picture of how the global economy is shaping up and healthy economic growth, generally, positively impact the equity markets largely because investors deploy their capital into the equities.
However, the macro-economic factors and news associated with trade fight between the US and China are some of the primary factors which have the potential to significantly affect the global equity markets. The investors should also have a look at the earnings report of the various companies as the equity markets are also affected by the corporate earnings season. Yesterday (i.e. May 2, 2019), Dow Jones Industrial Average closed the day at 26,307.79 which implies a fall of 122.35 points or 0.46% on an intraday basis. Also, on the same day, S&P 500 Index got closed at 2,917.52 reflecting a fall of 6.21 points or 0.21% on an intraday basis.
Oil Prices Might Be Sensitive To Global Parameters
As the market players are aware, the oil prices are very sensitive to the movement of equity markets and the global macro-economic parameters. In the current scenario, it can be assumed that the oil prices are primarily getting influenced by the higher output from the US. The prices of oil are also very sensitive to geopolitical concerns. If the tensions about the global economic slowdown increases, it can affect the oil demand which might influence the oil prices.
Australian Markets Wraps Up in Red: S&P/ASX200 Ends the Session Slightly Lower
The Australian markets get influenced by the performance of the global equity markets. If the trade battle between the US and China settles down on a permanent basis, it might positively affect the global equity markets and, thus, the Australian markets would also be benefitted. Today (i.e. May 3, 2019), S&P/ASX200 ended the session in red as it encountered a marginal fall and finally got closed at 6,335.8 reflecting a decline of 2.6 points.
Coming to the stock price movements, RedMed Inc (ASX: RMD) and Pilbara Minerals Limited (ASX: PLS) ended the session in green as the prices of these stocks got closed by witnessing a rise of 9.865% and 9.091%, respectively. On the other hand, Janus Henderson Group PLC (ASX: JHG) and Macquarie Group Limited (ASX: MQG) ended the day in red as their stock prices witnessed the fall of 12.12% and 5.426%, respectively.
Macquarie Group Limited had come forward and informed the market players about the results for FY 2019. In order to read the entire news about this, please click here. Also, MotorCycle Holdings Limited (ASX: MTO) had made an announcement about the profit guidance. In order to read entire news about this, please click here.
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