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

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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.

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