Market Update: What Has Been Pulling Down Investors’ Confidence?

  • Dec 17, 2018 AEDT
  • Team Kalkine
Market Update: What Has Been Pulling Down Investors’ Confidence?

It would not be wrong to say that the global investors are still worried about the slowdown in the global economic growth. The worries about the trade battle have managed to haunt investors and, as a result, the market participants are becoming worried about the business as well as consumer confidence. It can also be assumed that the trade worries have even visible impacting the global economies growth because of the weaker data which has impacted the markets lately. On December 14, 2018, the Dow Jones Industrial Average has witnessed a strong decline and closed at 24,100.51 which implies the fall of 496.87 points or 2.02%. Needless to say, the global markets would remain sensitive to the trade-related news moving forward.

Amidst worries about the trade wars and slowdown in the economic growth, the market participants need to know that the Federal Reserve meeting for the month of December 2018 is also fast approaching. The Federal Reserve meeting which has been scheduled for December 18-19 might also be the crucial driver for the global markets. Since the worries about the downturn in the global growth have been increasing, the results of the Federal Reserve meeting would be the key thing to watch for the market players.

Can the Slowdown Worries Impact Oil Markets?

It would be reasonable to assume that the slowdown in the global economic growth would pressurize the oil markets as well and the oil prices might witness a downtrend. Just now we have understood that the investors are being worried about the slowdown in the global economic growth and it would not be wrong to say that these worries could further impact the oil prices. The primary reason that the oil prices might witness a downward trend is that the slowdown in the economic growth might lead to weaker demand of oil thus, pulling the prices down. In the present scenario, the market players need to make investments in the markets after careful consideration. The Federal Reserve’s decision about the interest rates is also critical. If the Fed raises the rates, it could have a substantial negative impact on the equity markets.

Australian Markets Managed to Close in Green

On December 17, 2018, the Australian markets ended the session on the positive note. The S&P/ASX200 ended the session at 5658.3 which implies a rise of 56.3 points or 1%. Among the stocks which have managed to rise, Mineral Resources Limited (ASX: MIN) and Emeco Holdings Limited (ASX: EHL) have witnessed the rise of 10.559% and 6.912%, respectively. On the other hand, stocks like Australian Pharmaceutical Industries Limited (ASX: API) and Perpetual Limited (ASX: PPT) have witnessed a decline of 7.524% and 3.989%, respectively.

Cardno Limited (ASX: CDD) has made an announcement related to the Raba Kistner’s acquisition. Read the full news here. Also, Nuheara Limited (ASX: NUH) had made an announcement related to the partnership. Read the full news here.

Austal Limited (ASX: ASB) has managed to secure a contract from the US government to build two additional Littoral Combat Ships. Read the full news here.

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