The US markets ended on the positive note as Dow Jones Industrial Average managed to end at 25,461.70 on November 6, 2018 which implies that it witnessed the rise of 190.87 points or 0.76%. Yesterday, the markets were primarily helped by the robust momentum in the share price of Warren Buffettâs Berkshire Hathaway. This strong momentum has positively impacted the broader financial sector. The strong momentum in the Buffettâs conglomerate was witnessed because they have announced that they have bought their own shares for approximately $1 billion in August. However, unfavourable momentum was witnessed in the Nasdaq Composite because of the fall in Apple Inc. (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN). The downward momentum in the Apple stock was witnessed because the market players are of the view that their iPhone sales are expected to get a hit moving forward. Since, the company has released its quarterly report, the stock has not been able to impress the market players and, as a result, witnessed substantial downward momentum. However, Amazon witnessed the negative impact because the US President stated that the administration has been looking in the antitrust violations which have been committed by Amazon.
US Waivers Helped Oil Markets
The oil markets have been dealing a lot because of the fears regarding sanctions on Iran. The United States has granted waivers to some of the countries and allowed them to continue to import oil from Iran. This decision has aided the oil markets and these markets were relieved. Earlier, there were expectations that the oil prices might witness a strong uptrend. The increase in oil prices has the potential to disrupt the emerging economies. However, the concerns for the supply shortages were also eased when Saudi Arabia decided that they would be raising the production levels if any shortages with respect to the supply side is seen. The oil traders might be in the dicey position regarding the movement of the oil prices as a result of sanctions, waivers.
Will Federal Reserve Go for Rate Hike?
The Federal Reserve is expected to raise the interest rates in the December 2018 meeting primarily because of the strong US economy as well as wage growth. With the increased rates, the currencies of the emerging economies would be suffering as the US dollar would witness an appreciation. Earlier the market participants were hoping that the Fed might not raise the rates because of the sell-off witnessed in the markets globally. However, now those hopes do not exist, and the market trackers are widely expecting a hike in December.
How Australian Markets Have Performed?
The Australian ended the session on the positive note as S&P/ASX200 stood at 5875.2 which implies that it rose 57.1 points or 1.0%. Incitec Pivot Limited (ASX: IPL) and Western Areas Limited (ASX: WSA) ended the session by advancing 4.478% and 4.219%, respectively. On the contrary, Appen Limited (ASX: APX) and Skycity Entertainment Group Limited (ASX: SKC) concluded the session by falling 2.612% and 2.286%, respectively. The Australian economy is still witnessing the slump in the housing markets and the economists are predicting that the fall would continue even in 2019. Tighter lending conditions have substantially impacted the lending capacity of the borrowers.
The shares of Corporate Travel Management Limited (ASX: CTD) went into a trading halt as the company underway the review of VGI's 52-page report disclosed yesterday. In this report, hedge fund VGI Partners raises its short position on CTM.
The Income available from dividends remains attractive for many investors.
We take a look at the best yields on the market and assess what they say about a companyâs prospect.
One Thing is certain, though, Australia interest rates are still low, making income difficult to come by and keeping the focus for many investors on high yielding stocks. Kalkineâs team of analysts bought you handpicked report for âTop 25 Dividend Stocks For 2018.â
ASX-relevant Special Reports are published year-round to provide a detailed analysis into an investing opportunity or a potential risk to your portfolio.
Click here to get your free report.
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkinemedia.com and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.