Market Update: What Could Impact the US Markets?

  • Dec 06, 2018 AEDT
  • Team Kalkine
Market Update: What Could Impact the US Markets?

The US markets are expected to continue to witness the impacts of the trade battle as the investors are still concerned about the escalation in the battle. Initially, some positive momentum was witnessed in the markets when the trade battle between the United States and China came to a temporary halt. However, it seems like later on, the market players realized that the trade worries could escalate if outcome after the 90 days does not come as expected or positive. The trade battle between the US and China has the potential to disrupt the global economy and could also impact the consumer as well as business confidence. The trade battle can also impact the broader technology sector, and any negative impact on this sector could also impact the broader markets. If the trade war escalates from the present levels, it could lead to significant outflows from the equity markets which could have a significant negative impact on the stock indices.

The negative momentum in the financial markets also increases the worries of the global economic slowdown, and the investors might not make investments in the equities. Therefore, it would be in the interests of the global investors if the trade battle between the US and China sees a permanent end.

A Look at Oil Markets

Even though the investors are concerned about the trade battle between the US and China, there are also concerned about the fall in the oil prices. Also, the market players have every reason to be scared about as the prices of oil have been witnessing a downward trend. The impact of the decline in the stock markets have also impacted the oil prices, and another reason which has been impacting the oil prices is worries about the global economic slowdown. The market players are expecting that the demand of oil might witness a further fall which could impact the prices. However, still, there is hope that oil prices might witness a rise which could somehow help to improve the confidence of the market players.

It can be said that the recovery in the global stock markets might help the oil prices as well.

How Australian Markets Have Performed?

The Australian markets ended the session on December 6, 2018 on the negative note. On the same day, S&P/ASX 200 closed at 5657.7 which implies the fall of 10.7 points or 0.2%. A permanent settlement between the US and China would also be beneficial for the Australian economy. Coming to the gainers on December 6, 2018, Automotive Holdings Group Limited (ASX: AHG) and Charter Hall Group (ASX: CHC) ended by witnessing the rise of 4.14% and 4.017%, respectively. Talking about the stocks which declined on the same day, Afterpay Touch Group Limited (ASX: APT) and Seek Limited (ASX: SEK) closed by falling 5.332% and 4.715%, respectively.

Charter Hall Long WALE REIT (ASX: CLW) has completed the institutional entitlement offer. Read the full news here. Piedmont Lithium Limited (ASX: PLL) has released the update with respect to the land acquisition in regard to Piedmont Lithium Project. Read the full news here.


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