It can be said that the global market participants are having fears of the global economic slowdown. These fears have the potential to significantly negatively impact the broader momentum of the equity markets and can also weigh over the sentiments of the investors. When the fears of global slowdown increase in the minds of investors, they tend to avoid making deployments towards equities largely because of the risks they inherit. It can be assumed that the market players are currently having the recession fears which are also impacting the broader momentum of the equity markets.
Another factor which is important for the market players in the news related to the trade war between the US and China. It can be said that the settlement of the trade battle can help the broader markets to a large extent and can also reduce the fears about the global economic slowdown. Therefore, the investors should track the news associated with the trade dispute. Yesterday (i.e., March 27, 2019), Dow Jones Industrial Average closed the session in red as the index got wrapped up at 25,625.59 which implies the fall of 32.14 points or 0.13% on an intraday basis. On the same day, S&P 500 Index closed at 2,805.37 reflecting a fall of 13.09 points or 0.46%.
Understanding Factors Impacting Oil Prices
As the market players are aware, the oil prices are very sensitive to the broader macro-economic factors and worries about the slowdown can significantly impact the momentum of oil prices moving forward. Also, the oil prices can get influenced by the news related to trade battle between the US and China. The permanent settlement of trade war can help the oil prices. If moving forward, the disturbances in the broader economic environment reduce, it can positively impact the oil prices.
Australian Markets Closed in Red: Should You Be Relaxed?
The Australian markets closed the session in green as S&P/ASX200 got wrapped up at 6176.1 which reflects the rise of 40.1 points or 0.6%. Moving forward, the Australian economy and equity markets are expected to be influenced by momentum in the global economy. Coming to stock performances, the prices of stocks like Pilbara Minerals Limited (ASX: PLS) and Mayne Pharma Group Limited (ASX: MYX) have closed the day in green as they witnessed the rise of 15% and 3.759%, respectively.
On the other hand, on March 28, 2019, the prices of stocks like Eclipx Group Limited (ASX: ECX) and Seven West Media Limited (ASX: SWM) closed the session in red their prices witnessed the fall of 4.286% and 3.03%, respectively. Let us now have a look at some of the important news. ClearVue Technologies Limited (ASX: CPV) came forward and released the technical update. Read the entire news here. Also, Pact Group Holdings Ltd (ASX: PGH) had made an announcement about the appointment of new Managing Director and Chief Executive Officer (or CEO). Read the entire news here.