As the market players are aware, the equity markets are generally affected by the global macro-economic environment and by the news related to the trade battle between the US and China. However, considering the present scenario, it can be said that the equity markets in the United States are getting influenced by the news related to Huawei Technologies.
The trade battle between the US and China can disrupt the global growth momentum which might prompt the market players to sell their holdings in the equity shares. As a result, the equity markets might witness a downward momentum. However, the settlement of trade battle can bring some stability in the equity markets and in the economic environment. The geopolitical factors play a crucial role in the movement of the stock markets and a rise in the geopolitical worries can impact the momentum of global stock markets. Yesterday (i.e. May 21, 2019), Dow Jones Industrial Average ended the session in green as the index witnessed a rise of 25,877.33 which implies a rise of 197.43 points or 0.77% on an intraday basis. On the same day, S&P 500 got closed at 2,864.36 which reflects an increase of 24.13 points or 0.85% on an intraday basis.
Oil Prices To Remain Sensitive To Global Macro Factors
The oil prices are very sensitive to the macro-economic parameters and to the overall health of the economic environment. The disturbances to the economic growth prospects can influence the momentum of oil prices. It is also important for the market players to know that oil prices are also sensitive to the movement of equity markets. Additionally, the news related to the US and China trade battle can affect the movement of oil prices.
Australian Markets Ended in Green: S&P/ASX200 Rose by 0.2%
The Australian markets might also witness the negative impacts if the economic disturbances increases as these could be detrimental to the health of the global economy. If the global economy witnesses a negative impact, the Australian markets might also get impacted. Let us now have a look at how the stocks have performed today. On May 22, 2019, BINGO Industries Limited (ASX: BIN) and Lynas Corporation Limited (ASX: LYC) got ended in green as the prices of their stocks have witnessed a rise of 7.88% and 7.522%, respectively on an intraday basis.
On the other hand, Fortescue Metals Group Ltd (ASX: FMG) and IOOF Holdings Limited (ASX: IFL) got ended in red as the prices of these stocks have encountered a fall of 8.111% and 7.093%, respectively on an intraday basis. We will now have a look at some of the important news. Australian Agricultural Company Limited (ASX: AAC) came forward and released results for FY 2019. In order to read the entire news about this, please click here. Also, OFX Group Limited (ASX: OFX) had released its results for FY 2019 and its underlying EBITDA witnessed a rise of 8.1%. In order to read the entire news, please click here.