The global equity markets are sensitive to the news related to the macro-economic parameters and these news can also influence the buying behaviour of the market participants. If there is some sort of positive news or the various macro-economic factors indicate that the global growth might get improved, the equity markets might witness positive momentum. This is largely because the market players decide to increase their allocations towards equities which positively affects the broader momentum of stock markets.
The trade battle between the US and China can affect the global economic growth and this can negatively impact the performance of stock markets. The slowdown worries tend to negatively impact the sentiments of market participants and they reduce their deployments towards equities. Yesterday (i.e. June 5, 2019), Dow Jones Industrial Average got ended in green as the index witnessed a significant rise of 207.39 points or 0.82% on the intraday basis and got closed at 25,539.57. Also, on the same day, S&P 500 Index got closed at 2,826.15 which reflects a rise of 22.88 points or 0.82% on an intraday basis. The settlement of the trade fight is very important as a permanent end might help to reduce the worries about global economic slowdown.
Oil Prices Might Be Affected by Macro Factors
The oil prices are generally affected by several macro-economic factors and these prices are also sensitive to the news related to the US and China trade battle. The economic disturbances as well as global uncertainties might affect the demand of oil and, as a result, the oil prices are influenced. It can be said that the settlement of trade battle is very important to stabilize the broader momentum of equity markets. Notably, the oil prices are also affected by the equity markets’ movements.
Australian Markets Got Closed in Green: S&P/ASX200 Witnesses A Rise of 0.4%
The Australian equity markets are impacted by the global uncertainties and a rise in the US and China trade worries can significantly impact the performance of the indexes. Today (i.e. June 6, 2019), S&P/ASX200 got ended in green as the index has witnessed a rise of 24.5 points or 0.4% on an intraday basis and it got closed at 6,383. The settlement of trade battle can positively impact the Australian economy and, as a result, the equities might also witness favorable momentum. Coming to the performance of stocks, WiseTech Global Limited (ASX: WTC) and Charter Hall Group (ASX: CHC) got ended in green as their stock prices have witnessed a rise of 5.714% and 5.081%, respectively on an intraday basis.
On the other hand, Ausdrill Limited (ASX: ASL) and Emeco Holdings Limited (ASX: EHL) got ended in red as the stock prices have fallen by 6.786% and 5.202%, respectively. Talking about the important news, on June 5, 2019, Cashwerkz Limited (ASX: CWZ) had made an announcement about the introduction of digital cash investment platform which is in collaboration with Praemium. To read the entire news, please click here.