On Friday, the US markets have witnessed a substantial fall as the worries about global slowdown were returned in the minds of global market participants. It can be said that the weakness witnessed with respect to factory data have weighed over the sentiments of investors. The inverted yield curve negatively impacted that market players’ confidence and, as a result, they started fearing about the global downturn. Also, the market players are carefully tracking the news related to the trade battle between the US and China.
When the slowdown fear increases, the investors tend to liquidate their equity holdings and look for safer investments. As a result, the broader equity markets witnessed a downtrend. However, it can be said that the permanent end to the trade war might help in reviving the confidence of the market players. It is also important for the market players to know that, in the recent US Federal Reserve meeting, Mr. Jerome Powell has kept the interest rates on hold which was according to the expectations of market players. On Friday (i.e., March 22, 2019), Dow Jones Industrial Average ended the session in red as the index got closed at 25,502.32 which implies a fall of 460.19 points or 1.77% on an intraday basis. Also, on the same day, S&P 500 Index closed the session in red as it got closed at 2800.71 which reflects the decline of 54.17 points or 1.90%.
Oil Prices Are Sensitive Global Slowdown Fears
As the market players are aware, the oil prices are also very sensitive to the global economic environment and any sort of disturbances in this environment can significantly impact the movement of oil prices. When market players expect a global slowdown, they also expect that the demand of oil would witness a fall. As a result, oil prices get negatively impacted.
Australian Markets Closes in Red: S&P/ASX200 Falls
Today, the Australian markets wrapped up the session in red as S&P/ASX200 got closed at 6126.2 which implies the decline of 69 points or 1.1% on an intraday basis. On March 25, 2019, S&P/ASX 200 Financials (Sector) (XFJ) got closed at 5,793.9 which reflects the fall of 74.1 points or 1.28%. Coming to the performance of stocks, Newcrest Mining Limited (ASX: NCM) and Spark New Zealand Limited (ASX: SPK) have ended the session in green as their prices rose by 3.19% and 2.882%, respectively.
On the other hand, Eclipx Group Limited (ASX: ECX) and Altium Limited (ASX: ALU) have ended the session in red as the prices of their stocks fell by 12.752% and 8.398%, respectively on an intraday basis. Coming to some of the important news pieces, REVA Medical, Inc. (ASX: RVA) had come forward and made an announcement that they have secured $3 million debt facility. Read the full news here. Also, Milton Corporation Limited (ASX: MLT) had declared special dividend amounting to 2.5 cents per share. Read the full news here.
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