Market Update: US Markets Ended On A Positive Note: Should You Be Relieved?

  • Oct 31, 2018 AEDT
  • Team Kalkine
Market Update: US Markets Ended On A Positive Note: Should You Be Relieved?

The US markets concluded on the positive note on October 30, 2018 with Dow Jones Industrial Average settling at 24,874.64 which implies an intraday rise of 431.72 points or 1.77%. The markets have decided to play with the investors. Recently, the global markets were impacted by the slowdown in the technology stocks like Amazon (NASDAQ: AMZN) gave a disappointing outlook for the December quarter. A downturn in the tech stocks significantly impacts the broader markets and hence, the volatility is infused. On October 30, 2018, Nasdaq Composite ended the day by advancing 1.58%. Facebook (NASDAQ: FB) ended by rising 2.91% and Alphabet Inc (NASDAQ: GOOGL) rose 1.43%. However, Apple Inc. (NASDAQ: AAPL) witnessed an increase of 0.50%.

Oil Prices Rises: Will the Momentum Continue?

From the past few days, the oil prices were witnessing a down trend. For a change, today the prices managed to witness a rebound. Even though, the oil prices witnessed a rise, the impacts of the tensions related to the increased supply, lower oil demand was still visible. The talks have been scheduled for November between the United States and China. The Trump administration stated that the meeting might end on a positive note and the market players might get relieved from the trade worries. However, if this does not happen, Mr. Trump might go for the imposition of more tariffs. Earlier, a fall in the oil prices was witnessed primarily because of the increased US inventories. Not so long ago, the oil prices were witnessing the strong uptrend as the market players were expecting that there could be increased demand and lower supply. The elevated oil prices are generally not healthy for the emerging markets particularly those which are dependent on the oil imports. Moreover, the emerging economies have also witnessed the unfavourable impacts on their currencies as a result of the strong US dollar. A rise in the US dollar was primarily driven by increased interest rates.

What’s Happening in Australian Markets?

The Australian markets have managed to end the session on a positive note. S&P/ASX200 ended the session at 5830.3 which implies a rise of 25.2 points or 0.4%. AMP Limited (ASX: AMP) ended the day by advancing 6.926% while NIB Holdings Limited (ASX: NHF) rose 6.334%. On the other hand, Corporate Travel Management Limited (ASX: CTD) and TPG Telecom Limited (ASX: TPM) ended the day on the negative note by declining 27.46% and 5.658%, respectively. Infigen Energy Limited (ASX: IFN) reported the September quarter results today. In the September quarter, the production from Infigen Assets witnessed a decline of 3% on the YoY (year-over-year) basis.

Caltex Australia Limited (ASX: CTX) stated that its Convenience Retail segment’s EBIT might witness the negative impact. Overall, the Australian economy would be witnessing the negative impacts. The fall in the housing prices and restrictions on the lending are expected to cap the growth opportunities moving forward. Moreover, the Reserve Bank of Australia might also become dovish because of the increased macro headwinds. The mining industry is expected to witness the negative impacts from tariffs which could derail global growth. If the meeting between the US and China ends on the positive sentiments, the Trump administration might not consider escalating the trade worries. Even the though the Australian markets ended strong, the market players need to be aware that the global headwinds might again become the hurdle.

Notably, in the November meeting of the Reserve Bank of Australia, it is expected that the apex bank would not change the rates.

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