Market Update: Market Participants Awaits Federal Reserve’s Decision. What to Expect?

  • Dec 19, 2018 AEDT
  • Team Kalkine
Market Update: Market Participants Awaits Federal Reserve’s Decision. What to Expect?

As the market participants are well aware that the equity markets witnessing the unfavourable momentum primarily on the back of the global uncertainties as well as macro factors. These players are presently in a dicey situation, and they might be wondering whether or not they should participate in the stock markets considering the present scenario. However, at present, the market players are more focused on the Federal Reserve’s decision regarding the interest rates. The decision related to the interest rates have the potential to impact the global stock markets. The broader markets are expecting that the Federal Reserve might go ahead with the rate hike. Generally, the rate hike by the Federal Reserve opts when the economy is placed in a healthy position. But, in the present scenario, there have been worries related to the slowdown in the global economy. Therefore, it would be very crucial for the market players to keep an eye on the interest rate decision of the Federal Reserve. The market players need to be informed that the US President Donald Trump generally opposes the decision of the Federal Reserve to raise the interest rates.

On December 18, 2018, Dow Jones Industrial Average ended the session at 23,675.64 which implies the rise of 82.66 points or 0.35%.

Can Oil Prices Stabilise Moving Forward?

The investors are truly getting impacted by the worries about the global downturn in the stock markets and the participants in the oil markets might also witness the impacts. However, if the global markets experience favourable momentum moving forward, it might support the oil prices as the support to the financial markets would also help the oil markets. The positive factors related to the macroeconomic variables as well as the permanent settlement in the trade battle between the US and China can be considered as the primary factors which could provide the support to the financial markets and also the oil markets.

Earlier, there were expectations that the production cuts might support the oil prices moving forward. The production cuts were decided primarily because of the worries related to the oversupply as well as because of the tensions that slowdown in the economic growth might pull down the demand of the oil.

How Australian Markets Performed?

The Australian markets ended the session by witnessing a marginal decline. On December 19, 2018, S&P/ASX200 ended the session at 5580.6 which implies the fall of 8.9 points or 0.2%. Needless to say, the Australian markets are also expected to be sensitive to the global macroeconomic factors and the geopolitical worries. Considering the stocks which gained, Regis Resources Limited (ASX: RRL) and St Barbara Limited (ASX: SBM) ended the session by advancing 5.909% and 5.169%, respectively.

On the other hand, talking about the stocks which declined, Bega Cheese Limited (ASX: BGA) and Mayne Pharma Group Limited (ASX: MYX) ended the session on December 19, 2018, by falling 12.324% and 8.046%, respectively.

Meteoric Resources (ASX: MEI) has managed to get environmental approval. This approval has been given with regards to Joyce Project. Read the full news here. Also, Medibank Private Limited (ASX: MPL) made an announcement about the adoption of PHI reforms of the Federal Government. Read the full news here.

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