The participants in the equity markets are going through a very tough time as they are presently in a dicey situation. The markets have been strongly volatile mainly because of the macroeconomic factors and this increased volatility actually has the potential to derail the prospects of the global economic growth. When the US and China met in G20 summit, there were expectations that the trade war would come to an end which would help in reviving the investors’ sentiments. However, still the players were worried about temporary halt on the battle of 90 days and they were wondering the impacts if the settlement does not become permanent. Later on, the arrest of Huawei’s CFO further increased the worries about the trade war between the US and China.
Needless to say, there have been worries about the inverted yield curve which indicates that there might be a recession. Therefore, it would not be wrong to say that the market players are presently worried about the slowdown in the global economic growth which could force them to liquidate their holdings from the risky assets and, as a result, they might become less attractive towards the equities.
Will Oil Markets Help the Investors to Regain Confidence?
While the equity markets are presently volatile, it seems like the oil markets might witness favourable momentum moving forward primarily because of the production cuts which have been announced recently. Earlier, there were worries about the falling oil prices as the market players were concerned that the lower demand might lead to fall in the prices. The lower demand was anticipated by the players because of the worries related to the slowdown in the global economic growth. However, the much- needed production cuts bodes well for the oil markets which might support the oil prices. However, the oil markets are expected to remain sensitive to the trade battel between the US and China and any positive news from the trade war front would help the oil markets to witness favourable momentum.
Markets in Australia Ends in Green
On December 12, 2018, the Australian markets managed to end the session on the positive note. S&P/ASX200 closed at 5653.5 which implies a rise of 77.6 points or 1.4%. Any sort of favourable news with respect to trade war between the US and China is highly optimistic to the Australian markets. Coming to the stocks which have gained momentum, Speedcast International Limited (ASX: SDA) and Mayne Pharma Group Limited (ASX: MYX) ended the session on December 12, 2018 by witnessing the rise of 7.784% and 6.145%, respectively.
On the other hand, St Barbara Limited (ASX: SBM) and Regis Resources Limited (ASX: RRL) have closed the session by declining 3.664% and 3.139%, respectively. Consolidated Zinc Limited (ASX: CZL) has made an announcement about the production update. In order to read the full news, please click here. TillerStack, Invigor’s subsidiary, managed to strike deals amounting to more than $720,000. Read the full news here. Impression Healthcare Limited (ASX: IHL) has provided an update related to the license agreement. Read the full news here.