Market Update: What US Investors Are Planning To Do?

  • Nov 22, 2018 AEDT
  • Team Kalkine
Market Update: What US Investors Are Planning To Do?

The US markets have been witnessing a lot of pressure lately mainly because of the concerns related to the slowdown in the global economic growth as well as weaker technology sector. As most of the market players are aware that the markets largely follow the footsteps of the technology sector and a downturn in the broader tech sector or giant technology stocks could hamper the broader equity markets. Lately, Apple Inc. (NASDAQ: AAPL) has been witnessing a lot of pressure which is weighing on the broader equity markets. The market players are of the view that the weakness is witnessed because of the weaker growth with respect to the consumer IT sector. However, according to them, the enterprise IT sector seems to have a robust outlook. On November 21, 2018, Dow Jones Industrial Average ended the session marginally lower at 24,464.69 which implies a marginal decline of 0.95 points. However, the stock price of Apple ended at US$176.78 per share which implies the marginal fall of US$0.20 per share or 0.11%.

Oil Prices Still Lacks Confidence: What to Expect

It seems like the oil prices are struggling to garner the investor confidence as the elevated US crude inventories continue to weigh on the prices. Still, some of the market players are expecting that the expectation for the supply cuts might provide support oil prices to gain. The market trackers are of the view that the US inventory data has been showing robust supply builds because of the increased US crude oil production. In the meeting which is scheduled to take place on December 6, 2018, the OPEC might go for reduction of the supplies so that the prices do not witness a steep fall. Moreover, the downturn in the global markets is also weighing heavily on the oil prices as the downturn raises the concerns for the oil demand.

Fall in Oil Prices Helped India

Not so long ago, the market players reflected negative views on the Indian currency. However, it seems like they have changed their opinions about the Indian currency. The fall in the oil prices, because of the worries of the oversupply, has helped the Indian rupee to regain the lost confidence of the market players. The market trackers are of the view that the overseas investors are now showing increased interests in the Indian equity as well as debt assets. The Indian assets have started attracting the interests of the overseas investors because of the strong downtrend in the crude prices. Some of the players are of the view that the fall in the crude prices would help in improving the corporate profits and should ease the tensions related to the current account deficit.

Australian Markets Ended in Green

The Australian managed to close the session on the positive note on November 22, 2018. S&P/ASX200 ended the session at 5691.3 which implies a rise of 48.5 points or 0.9%. Mineral Resources Limited (ASX: MIN) and Galaxy Resources Limited (ASX: GXY) ended the session by advancing 26.586% and 9.237%, respectively. As the market players are aware, the technology stocks have not been performing up to the mark which is significantly impacting the equities, and the hedge funds have diverted their funds to other sectors. Read the full news here. Additionally, the OECD or Organisation for Economic Co-operation and Development has given the favourable outlook regarding the economic growth. Read the full news here.

Coming to the banking stocks in the Australian markets, the Westpac Banking Corporation (ASX: WBC) has been regarded as the “outlier”. Read the full news here.


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