Market Update- Markets Are Playing with You: Have You Had Your Chance?

  • Oct 26, 2018 AEDT
  • Team Kalkine
Market Update- Markets Are Playing with You: Have You Had Your Chance?

Increased Volatility Would Weigh on Investors’ Mind

It seems like the markets have decided to play with investors’ sentiments. After significant sell-off, the US markets witnessed a significant rebound and helping Dow Jones Industrial Average to close 24,984.55 which reflects an increase of 401.13 points or 1.63%. The strong momentum witnessed in the US markets was helped by the robust increase in the technology stocks. NASDAQ Composite, which had witnessed significant downtrend recently, witnessed strong momentum which was underpinned by the improvement in the technology stocks. Before looking dipping the hands in this volatility, the investors need to know what are the primary factors which impacting the markets. The disappointing earnings season, fear of the Federal Reserve’s hawkish view, trade worries, oil prices as well as fading growth prospects of the global growth are some of the crucial factors which are impacting the markets and, in turn, investors’ portfolios.

The share prices of the Amazon (NASDAQ: AMZN) witnessed a downtrend in the after-trading hours on the news reported by the company. They have given the sales forecasts for the December 2018 quarter which were short of the analysts’ expectations.

Oversupply Concerns Pulled Oil Prices Lower

Not so long ago, the oil prices were skyrocketing primarily because the market players were expecting to encounter supply shortages mainly because of the Iran sanctions. However, in the current scenario, the situation is opposite. The oil prices have witnessed a downtrend mainly because Saudi Arabia’s OPEC governor has stated that the oil markets might witness a situation of increased supply with lower demand. The demand of the oil is a question which is popping up in the players’ minds mainly because the significant downtrend in the global equities might lead to lower demand. The increased supply is expected because of the higher inventories which is witnessed. Thus, reduction in the stock piles is the need of the hour. The increased oil prices negatively impact the emerging countries which are dependent on imports for their oil needs like India.

Australian Markets ended Flat

While the US markets witnessed the robust momentum aided by the tech stocks, the Australian markets have not witnessed much movement. S&P/ASX200 ended the session flat at 5665.2. Fortescue Metals Group Limited (ASX: FMG) ended the day on the positive note at advancing 5.22% while Lynas Corporation Limited (ASX: LYC) ended the session by rising 4.412%. Primary Health Care Limited (ASX: PRY) ended the day on the weaker note as the stock declined 7.664%. Overall, the Australian economy is witnessing lots of hurdles in the growth prospects. The Australian banking sector is under the increased regulatory pressures making lending procedures a difficult task for the business and retail consumers.

However, increased lending regulations are impacting the housing prices as these prices are witnessing a significant downtrend. The shareholders of Regis Healthcare Limited (ASX: REG) have given favourable votes for re-election as well as the election of the directors. However, they were not convinced to take a yes call for the new pay policies. For more information click here. The Hazer Group (ASX: HZR) witnessed the positive momentum in the stock price. However, the industry is expected to grow substantially by the year 2050. For more information click here.

According to the Productivity Commission, the investors in the SMSFs or self-managed superannuation funds are getting a hit on their net returns mainly on the back of increased costs. For more information, click here. Primary Health Care Limited (ASX: PRY) has made an announcement that it would be compensating some of the present as well as past employees as they have wrong payments. For more information, click here.

Dividend Stocks To Buy

The Income available from dividends remains attractive for many investors.

We take a look at the best yields on the market and assess what they say about a company’s prospect.

One Thing is certain, though, Australia interest rates are still low, making income difficult to come by and keeping the focus for many investors on high yielding stocks. Kalkine’s team of analysts bought you handpicked report for “Top 25 Dividend Stocks For 2018.”

ASX-relevant Special Reports are published year-round to provide a detailed analysis into an investing opportunity or a potential risk to your portfolio.

Click here to get your free report.


Disclaimer

The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkinemedia.com and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.

 

All pictures are copyright to their respective owner(s).Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.

 

There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK