Market Update: Dow Jones in Red.Trade Tensions Weighed Over Market Players’ Sentiments

  • May 24, 2019 AEST
  • Team Kalkine
Market Update: Dow Jones in Red.Trade Tensions Weighed Over Market Players’ Sentiments

The global equity markets are, in the present scenario, exposed to the risks of the global slowdown primarily because of the prevailing trade tensions between the US and China. The global economic uncertainties can disrupt the broader momentum of the equity markets. The investors avoid making deployments towards the equity markets, if the worries about slowdown increases, which generally leads to the unfavourable momentum in the equity markets. Recently, it looks like that the market players are more worried about the trade tensions between the US and China as there are expectations that the US President might restrict the selling of the US components to the Huawei Technologies. A rise in the trade worries could derail the prospects of global growth which could, in turn, impact the equity markets.

Therefore, it can be said that the settlement of the trade fight is of utmost importance so that the global stock markets can be stabilised. Yesterday (i.e. May 23, 2019), Dow Jones Industrial Average ended the session in red as the index got closed at 25,490.47 which implies a fall of 286.14 points or 1.11% on an intraday basis. Also, S&P 500 Index got closed at 2,822.24 which reflects a fall of 34.03 points or 1.19% on an intraday basis.

Oil Prices Are Sensitive to Macro-economic Factors

The oil prices are generally affected by the global factors and by the overall health of the economy. A rise in the economic uncertainties can affect the demand of oil. However, the oil prices are also influenced by the movement of stock markets. The geopolitical worries have the potential to disrupt the momentum of the stock markets and can also influence the movement of oil prices.

Australian Markets got Closed in Red: S&P/ASX200 Falls by 0.6%

The Australian markets are also sensitive to the overall health of global economy and economic disturbances can hamper the global growth prospects. If the trade battle between the US and China ends on the permanent basis, it might positively impact the broader momentum of Australian equity markets. Today (i.e. May 24, 2019), S&P/ASX200 got closed at 6,456 which implies a fall of 35.8 points or 0.6% on an intraday basis. Let us now see how the stocks have performed today. Ansell Limited (ASX: ANN) and Orora Limited (ASX: ORA) got ended in green as the prices of these stocks have witnessed a rise of 3.484% and 3.155%, respectively on an intraday basis.

On the other hand, Galaxy Resources Limited (ASX: GXY) and Pilbara Minerals Limited (ASX: PLS) got wrapped up in red as the stock prices of these companies fell by 6.548% and 5.66%, respectively on an intraday basis. We will now have a look at the important news. Sydney Airport (ASX: SYD) came forward and published the information about the annual general meeting. In the AGM, the chairman of the company highlighted achievements of the company which were largely related to year 2018. To read the entire news, please click here.


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