Market Update:Dow Jones Ends Lower. Fears Of Global Recession Increases As China Retaliates

  • May 14, 2019 AEST
  • Team Kalkine
Market Update:Dow Jones Ends Lower. Fears Of Global Recession Increases As China Retaliates

As the market players are aware, the global equity markets are very sensitive to the macro-economic environment wherein the rise in economic disturbances have a potential to disrupt the broader momentum of equities. In the current scenario, it can be said that the trade battle between the US and China is becoming worse and this has been negatively impacting the sentiments of market players. When the worries about the global economic slowdown increases, the investors decide not to make deployments towards equities because of the risks involved with this asset class.

China had made an announcement about the retaliatory tariffs which have significantly weighed over the sentiments of market players. The geopolitical worries can substantially impact the broader equity markets. The settlement of trade dispute is presently needed so that the equity markets can stabilize. Yesterday (i.e. May 13, 2019), Dow Jones Industrial Average ended the session in red as the index encountered a substantial fall of 617.38 points or 2.38% on an intraday basis. Also, on the same day, S&P 500 Index got closed at 2,811.87 which implies a fall of 69.53 points or 2.41%. A rise in the economic uncertainties can also prompt investors to liquidate their existing holdings in equities which could also lead to the downward momentum in the equity markets.

Global Tensions Might Also Influence Oil Prices

The oil prices get affected by the global factors and a rise in the worries about economic downturn can influence the movement of oil prices. The increased worries with respect to the trade battle between the US and China can derail the prospects about the global economic growth which could, in turn, affect the movement in oil prices. Also, the movement of stock markets influence the oil prices.

Australian Markets Ended in Red: S&P/ASX200 Falls 0.9%

The Australian markets might be impacted by several macro-economic factors and by the increasing trade tensions between the US and China. The worries about global economic downturn could weigh over the performance of Australian equity markets. Today (i.e. May 14, 2019), S&P/ASX200 got closed at 6,239.9 which implies a fall of 57.7 points or 0.9% on an intraday basis. We would now have a look at how some of the stocks have performed on ASX today. Fortescue Metals Group Ltd (ASX: FMG) and Evolution Mining Limited (ASX: EVN) got closed in green as their stock prices witnessed a rise of 7.437% and 7.207%, respectively.

On the other hand, Mayne Pharma Group Limited (ASX: MYX) and Reliance Worldwide Corporation Limited (ASX: RWC) got ended in red as their stock prices fell by 15.038% and 6.941%, respectively.

Let us now quickly have a look at some of the important news of the day. Admedus Ltd (ASX: AHZ) came forward and released its 2019 AGM presentation. In order to read the full news about the same, please click here. Also, WhiteHawk Limited (ASX: WHK) manages to garner A$2.5 million thorough placement. To read the news, please click here.

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