The past week can be regarded as the worst nightmare for the market participants as the global markets witnessed significant downtrend. The Dow Jones Industrial Average did not spare investors even on the last trading day as the index settled at 24,688.31 which represents that it has fallen 296.24 points or 1.19%. In the past week, even the tech lovers witnessed the hit. On October 26, 2018, Amazon (NASDAQ: AMZN) ended the session by declining 7.82%. The top management have given the weaker outlook for the December 2018 quarter which has disappointed the market participants. The recent market rout suggests that the days of celebration for the market players on the back of strong economy no longer exists. Negative momentum was also witnessed in Alphabet’s Google (NASDAQ: GOOGL) primarily because of the slowing growth with respect to the revenues. In an environment where the investors are facing the impacts of the geopolitical uncertainties, they cannot digest a fall from such big names in the technology space. If a downtrend occurs in these stocks, the broader markets are likely to witness the impacts.
Oil Prices Fell Amidst Downturn in Global Markets
The oil prices fell as the market players are still worried about the subdued global growth because of the downturn in the global financial markets witnessed in the previous week as well as strengthened dollar in the beginning of this week. However, the major concerns for the growth are looming over the emerging economies in the Asia region. The demand for the oil remains a concern for the oil traders which is pulling the oil prices down. The stocks have been witnessing downward momentum because of several headwinds like uncertainty of the policies, not-so-good earnings of some companies as well as increased interest rates. The global downturn could impact the consumer as well as investment spending which could, in turn, impact the trade flows and thus, derailing the demand. Earlier, the oil prices were witnessing a sharp increase because the players were worried that demand might exceed the supply. However, it seems like the situation has now reversed. The Iran sanctions are expected to start in the early November 2018 and, needless to say, Asia is primarily dependent upon the oil imports from Iran.
Amidst Global Downturn, Australian Markets Managed to End on A Positive Note
Australian markets ended on a positive note on October 29, 2018 at 5728.2 which implies a rise of 63 points or 1.1% in a single day. Syrah Resources Limited (ASX: SYR) ended the session by advancing 8.602% and Mayne Pharma Group Limited (ASX: MYX) rose 5.714%. However, Emeco Holdings Limited (ASX: EHL) and Seven West Media Limited (ASX: SWM) witnessed a fall of 8.772% and 4.938%, respectively. Senex Energy Limited (ASX: SXY) announced numbers related to the capital and production expenditure for fiscal year 2019. For more information, please click here.
Kogan.com Limited (ASX: KGN) issued a business update for the September 2018 quarter and fell about 33% as investors were disappointed with the overall result. As per the update, it had witnessed 41.6% YoY growth in the active customers as at September 2018. For more information, please click here.
The stock price of Watpac Limited (ASX: WTP) witnessed a substantial rise today morning because BESIX has decided to go ahead with the acquisition of 100% of the shares of Watpac Limited that was not owned by them earlier. For more information, click here.
The market investors are expecting that the big four banks operating in Australia are likely to get impacted by the lower credit growth moving forward. Moreover, the interim report from Royal Commission would also act as a headwind in their performance. For more information, please click here.
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