Market Update: Dow Jones Industrial Average Ends In Green. Should The Global Market Participants Be Relaxed?

  • May 16, 2019 AEST
  • Team Kalkine
Market Update: Dow Jones Industrial Average Ends In Green. Should The Global Market Participants Be Relaxed?

It can be assumed that the global equity markets are, in the present scenario, being affected by the news associated with the trade battle between the US and China. The geopolitical tensions have the potential to disrupt the momentum of global growth and can also prompt the market players to sell their present equity holdings largely because when the economic conditions become uncertain, the market players avoid deployments in the equity markets. A rise in the uncertainties can have a significant negative impact on the global stock markets.

The settlement of the trade battle is what the broader equity markets and the investors currently need. If this happens, the equity markets might stabilize. However, if the trade tensions between the US and China increases, it could have a negative impact on the sentiments of market players and there can be increased risks of global economic slowdown. Yesterday (i.e. May 15, 2019), Dow Jones Industrial Average got closed at 25,648.02 which implies a rise of 115.97 points or 0.45% on an intraday basis. Also, on the same day, S&P 500 Index got closed at 2,850.96 which reflects an increase of 16.55 points or 0.58% on an intraday basis.

Oil Prices To Remain Sensitive To Macro-Economic Variables

As the market players are aware, the oil prices are sensitive to the number of global factors. Also, the overall health of global economy and the movement of stock markets are some of the other factors which could affect the oil prices. A rise in the geopolitical tensions might bring uncertainty which could impose questions on the oil demand. If the oil demand comes into question, there are expectations that oil prices would be influenced.

Australian Markets Ended in Green: S&P/ASX200 Closes 0.7% Higher

The Australian markets might be affected by several macro-economic factors and a rise in trade worries could also weigh over the broader Australian economy and on the equity markets. Therefore, the settlement of the US and China trade battle might help the performance of Australian equity markets. We would now have a look at the performance of some stocks. Today (i.e. May 16, 2019), Xero Limited (ASX: XRO) and Lynas Corporation (ASX: LYC) wrapped up the day in green as their prices rose by 10.753% and 6.806%, respectively on intraday basis.

On the other hand, McMillan Shakespeare Limited (ASX: MMS) and Westpac Banking Corporation (ASX: WBC) ended today’s session in red as their prices encountered a fall of 4.015% and 3.868%, respectively on an intraday basis. We would now have a look at some of the important news. AP Eagers Limited (ASX: APE) had come forward and released the market update on profit guidance as well as AHG takeover bid. To read the entire news, please click here. Also, Xero Limited (ASX: XRO) had published their FY 2019 annual report for the year ended March 31, 2019. To read the full news about the company, please click here.

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