Market Update: Markets Follow The Footsteps Of Tech Giants

It would not be wrong to say that the US markets follow the direction of the technology giants and any deviation in these giants could severely impact the broader markets. On November 20, 2018, Dow Jones Industrial Average ended the session at 25,017.44 which implies the substantial intraday fall of 395.78 points or 1.56%. The significant decline in mainly attributable to the negative momentum in the stocks of Apple Inc. (NASDAQ: AAPL) as well as Facebook (NASDAQ: FB). Apple witnessed the fall of 3.96% and settled at US$185.86 per share while the Facebook declined 5.72% and closed at US$131.55 per share. Early in the day, the negative momentum was witnessed in the equities on the Apple’s news which stated that the company’s sales with respect to the newest lines of phones would not be as much as investors or the company itself had expected. Another news which impacted the stock price of Apple was that the company has reduced the orders for the products like iPhone XR, iPhone XS Max as well as iPhone XS. Therefore, the investors need to know that any negative momentum in the FAANG stocks could adversely affect the markets.

Oil Prices Witnesses A Rise: But Why?

The oil prices experienced a rise in the price on November 20, 2018 on the back of the market’s expectations that the producer club OPEC might agree to reduce the supply. A meeting has been scheduled for December 6, 2018. The reduction in the supply is required in order to avoid the situation of oversupply because of the weaker growth in the demand as well as higher levels of output from the US. As per the market experts, the fundamentals are suggesting that the oil prices might gain some momentum moving forward after they have witnessed a significant decline recently. The factors that might drive the oil prices higher are the considerations of the producers of the supply reductions, and OPEC also might agree with the supply cuts. The oil traders are confused when it comes to investing in the present market scenario, and they have got every reason for it. Earlier, the markets were struggling about the news related to the sanctions on Iran by the US and later on the US granted waivers to some countries from the sanctions which significantly affected the investors’ behaviour. Any comments or news related to the demand or supply of the oil has the potential to substantially impact the oil prices.

Australian Markets Closed Lower

The Australian markets ended the session on a weaker note as the markers witnessed the fall. S&P/ASX200 closed the session at 5671.8 which reflects that it has fallen 21.9 points or 0.4%. Talking about the gains, the Saracen Mineral Holdings Limited (ASX: SAR) and Pact Group Holdings Limited (ASX: PGH) ended the session by increasing 3.175% and 2.319%, respectively. On the other hand, Fletcher Building Limited (ASX: FBU) and Altium Limited (ASX: ALU) ended the session by declining 10.811% and 9.403%, respectively. On November 20, 2018, the Reserve Bank of Australia or RBA had released their minutes of the meeting. As per the minutes, the members initiated the talks regarding the global economy by stating that, in 2018, strong growth momentum was witnessed among the major trading partners of Australia.

In the target statement issued today, Directors of PropertyLink Group (ASX: PLG) unanimously recommended shareholders to "accept" the $1.20 takeover offer proposed by ERS Real Estate as there is no better offer available with the company. Read the full news here.


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