It can be assumed that the market players are somewhat relieved from the worries about the global economic slowdown. The comments of the US Federal Reserve Chairman as well as the strong jobs report of the US have supported the sentiments of the global investors. Moreover, it is also important to note that the market participants were worried about the trade tensions which were escalating between the United States and China. Since the efforts are being made and both the countries are now trying to resolve the dispute, the markets are also witnessing positive momentum. It can be assumed that the trade war impact which severely affected the Chinese economy and further raised the tension about the slowdown in the global economic growth, seems to be subsiding a bit.
As the market players are aware, the equity markets are highly sensitive to the news related to the trade wars and any positive news from that front, supports the stock markets. The concerns about the downturn further increased when the technology giant, Apple Inc., reduced the revenues expectations for the December quarter. The weaker equity markets also negatively impacted oil prices. On the other hand, on January 8, 2019, Dow Jones Industrial Average ended the session at 23,531.35 which reflects the rise of 98.19 points or 0.42%.
Positive Trade-Related News Supports Oil Prices as Well
The oil prices were earlier being impacted by the increased trade worries, higher supplies as well as worries about the global economic slowdown. However, the trade talks between the US and China ending on a better note can help global equity as well as the oil prices. It is to be understood that in the scenario of the global slowdown, the oil demand is expected to get hampered which weighs over the oil prices. However, still, the participants in the oil markets are expected to make decisions by considering all the crucial factors.
S&P/ASX200 Closes the Session Marginally Higher
The Australian markets ended the session on January 8, 2019 on the positive note. If the talks between the US and China about the trade-related matters end on the positive note, the Australian economy would also be supported. On January 8, 2019, S&P/ASX200 closed at 5722.4 which implies the rise of 39.2 points or 0.7%. In addition, the stocks like Mayne Pharma Group Limited (ASX: MYX) and Bingo Industries Limited (ASX: BIN) closed the session higher by witnessing a rise of 8.228% and 5.707%, respectively.
However, on the other hand, the stocks like Resolute Mining Limited (ASX: RSG) and St Barbara Limited (ASX: SBM) ended the session by witnessing a fall of 5% and 4.969%, respectively.
Montgomery Global Equities Fund (ASX: MOGL) had made an announcement about final distribution which happens to be lower than estimated figure. Read the full news here. Also, JAT Energy Limited (ASX: JAT) had made an announcement that they have appointed additional company secretary. Read the full news here.
Despite the fluctuating scenario with some stocks moving up the ladder and some facing few headwinds, all ordinaries witnessed an uptrend.
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