Market Update: Fall In Oil Prices Weighs On The US Stocks

  • Nov 26, 2018 AEDT
  • Team Kalkine
Market Update: Fall In Oil Prices Weighs On The US Stocks

It's not wrong to assume that the oil prices control the sentiments of the global investors, especially if we consider the present environment. However, the stocks of the technology sector also hold their importance in estimating the direction of the broader markets. A fall in the broader technology sector weighs on the investors’ sentiments which further accelerates the outflows from the equities. The previous week also witnessed the negative impacts from the downturn in the technology stocks. The market participants were still dealing with shocks given by the technology giants, and, later on, the energy stocks also weighed on the sentiments of the investors. These stocks were largely impacted by the strong downward trend in the oil prices. On November 23, 2018, Dow Jones Industrial Average ended the session at 24,285.95 which reflects the fall of 178.74 points or 0.73%.

What Should Investors Expect from the US-China Meeting

The global market investors are still concerned about the meeting between the United States and China which would be starting at the end of this month. The players surely expect that these worries come to an end it can truly disrupt the global business as well as consumer confidence. Any escalation in the trade battle between the US and China might lead to serious repercussions which could largely impact the equities. Moreover, since we know that the technology sector is truly the force which drives the momentum of the broader equity markets, the increased tensions related to the trade battle could significantly impact the technology stocks. Therefore, some sort of improvement in the battle could help the markets and also the technology stocks.

A Quick Look at The Oil Prices

The decline in oil prices has truly impacted the behaviour of global investors. The main reasons for the decline in the oil prices are worries about the higher supply, increased concerns related to the battle between the US and China as well as the higher production levels in the United States. If the meeting between the US and China does not end on a positive note, it might dent the global growth which, in turn, impacts the oil prices as it would raise the worries related to demand of the oil. Thus, the settlement between the US and China is much-needed for the technology stocks, broader equity markets as well as for the stability in the oil prices.

What’s Happening in the Australian Markets

The Australian markets closed the session on November 26, 2018 on a negative note. S&P/ASX200 ended the session at 5671.6 which reflects that the index witnessed the fall of 44.6 points or 0.8%. The stocks like Afterpay Touch Group Limited (ASX: APT) and Viva Energy Group Limited (ASX: VEA) ended the session on a strong note as they have witnessed the rise of 5.757% and 4.749%, respectively. On the other hand, the stocks like Independence Group NL (ASX: IGO) and Mineral Resources Limited (ASX: MIN) ended the session on the weaker by declining 7.712% and 6.654%, respectively.

The fall in the oil prices are expected to positively impact Qantas Airways Limited (ASX: QAN). Read the full news here. Also, Admedus Limited (ASX: AHZ) has appointed the new interim chief financial officer or CFO. Read the full news here. Recently, The Betmakers Holdings Limited (ASX: TBH) has made an acquisition of Dynamic Odds as well as GBS. Read the full news here.

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