It would not be wrong to say that the technology stocks are the primary stocks which decide the direction of the broader markets. On 31 October 2018, the Dow Jones Industrial Average ended the day in green and settled at 25,115.76 which implies the rise of 241.12 points or 0.97%. The US markets were well-supported by the earnings announcement from Facebook (NASDAQ: FB) and General Motors (NYSE: GM). However, still, the major indexes ended the month on losses. The stock prices of General Motors and Facebook ended October 31, 2018 by advancing 9.13% and 3.81%, respectively. However, Apple Inc. (NASDAQ: AAPL) and Alphabet Inc (NASDAQ: GOOGL) settled the day by increasing 2.61% and 3.91%, respectively. Overall, the equity markets have been impacted by several factors in October 2018 like trade battle between the US and China, worries regarding increased rates and subdued momentum in the company earnings. The major indices were impacted in October 2018 because of the hit that was witnessed by the giant technology stocks.
What’s happening in the Oil Markets
The oil traders are in the dicey position because of the uncertainty about the oil prices. Earlier, the prices were increasing at a rapid pace because of the worries about the Iran sanctions and the increased concerns about the supply shortages. As a result, the emerging economies witnessed a strong hit because of elevated prices as well as currency depreciation. However, later on, the concerns regarding the slowdown of the global economy weighed on the investors’ minds and the market players expected that demand of oil might be impacted, and the supply might exceed because Saudi Arabia has plans to raise the production levels so that the supply shortages caused by the Iran sanctions can be met. This has led to a decline in oil prices.
A Quick Wrap Up of October
The October month was more of a roller coaster ride for the market participants as the markets witnessed a huge volatility. The primary concerns for the higher volatility were the trade worries, disappointing earnings from some of the companies, elevated interest rates as well uncertainty among the oil prices. In October 2018, the tech companies also witnessed the negative impacts thus, derailing the global markets. Another factor which impacted the market participants were the weaker Chinese markets.
How Australian Markets Have Performed
The Australian markets have ended marginally higher at 5840.8 implying a rise of 10.5 points or 0.2%. On November 1, 2018, Orocobre Limited (ASX: ORE) witnessed the rise of 11.712% and Corporate Travel Management Limited (ASX: CTD) closed by advancing 11.322%. Ausdrill Limited (ASX: ASL) and Vocus Group Limited (ASX: VOC) ended the session by falling 9.913% and 4.665%, respectively. However, Australia witnessed a favorable momentum in the trade surplus as the export sector witnessed positive momentum because of the higher prices of the commodities as well as a lower Australian dollar.
Helped by the data regarding the trade surplus, the Australian dollar has been pushed higher. Corp Group Limited (ASX: CCP) witnessed a rise in its stock price today because of the guidance update which is provided in the Annual General Meeting or AGM. For more information, click here. Challenger Limited (ASX: CGF) surged 3.899% as it welcomed Retirement Income Framework reforms announced by the government yesterday. For more information, click here. The housing prices have been declining because of the lower investor buying activity. For more information, click here.
Even though the banking sector has been dealing with lots of challenges lately, Australia and New Zealand Banking Group Limited (ASX: ANZ) managed to post better results as compared to the expectations of the market participants.
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