Market Update: Uncertainties Relating To Trade War. What Investors Need To Know?

  • Jan 18, 2019 AEDT
  • Team Kalkine
Market Update: Uncertainties Relating To Trade War. What Investors Need To Know?

The investors are in the dicey position with respect to the trade war between the US and China. The trade war can be regarded as a serious threat to the growth of the global economy and the investors are getting worried. The stock markets are reacting to every news related to the trade wars which reflects that the markets are very sensitive to these types of news. However, the investors have a lot to focus on. The earnings season is also prevailing, and the market players are closely tracking the earnings of the US companies. It can be assumed that, moving forward, the earnings season would primarily decide the movement of the US equity markets.

Morgan Stanley (NYSE: MS) had recently published the quarterly results and its profits were weaker than expected. On January 17, 2019, the shares of Morgan Stanley ended the session at US$42.53 per share which implies the fall of 4.45% or US$1.98 per share on the intraday basis. However, on the same day, Dow Jones Industrial Average ended the session at 24,370.10 which implies the rise of 162.94 points or 0.67%.

Oil Prices Are Making Investors Worried

The oil prices are witnessing the impacts of the increased output and, as a result, the oil prices are witnessing the negative impacts. Moreover, since the oil prices are also sensitive to the global macro-economic factors, the prices are expected to get affected by the trade battle between the US and China moving forward. The oil prices are indeed witnessing elevated levels of the volatility. However, the movement in the oil prices would be sensitive to the movements in the equity markets. A negative momentum in the equity markets would hamper the expectations of the oil demand which could severely impact the oil prices.

Australian Markets Ended on Positive Note

The Australian markets ended the session on the positive note, and it can be said the positive closing of Dow Jones Industrial Average might have supported the Australian markets. S&P/ASX200 closed the session at 5879.6 which implies the rise of 29.5 points or 0.5%. It needs to be noted that the Australian markets would be largely benefited by the settlement of the trade tensions between the US and China. On January 18, 2019, the stocks like Afterpay Touch Group Limited (ASX: APT) and Sandfire Resources NL (ASX: SFR) closed the session on the positive note and these stocks have witnessed the rise of 12.982% and 6.006%, respectively on the intraday basis.

However, on the other hand, the stocks like Steadfast Group Limited (ASX: SDF) and Estia Health Limited (ASX: EHE) closed today’s session on the negative note as these stocks have witnessed the fall of 5.282% and 4.911%, respectively. Rio Tinto Limited (ASX: RIO) had made an announcement related to Q4 2018 results. Read the full news here. Also, MGC Pharmaceuticals Limited (ASX: MXC) released the quarterly activity report. Read the full news here.

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