The global markets are very sensitive to the macro-economic factors and a rise in economic uncertainties have the potential to disrupt the global growth momentum. In the present scenario, it can be said that the markets are reacting mostly to the announcements which are being floated in the market by the US President and which are related to the macro-economic factors. Recently, the market players were fearing that the Trump administration might impose tariffs on the goods of Mexico. The disturbances in the trade environment can derail the prospects of economic growth and can also weigh over the performance of the global stock markets.
The global markets can significantly be impacted if the trade battle does not end and if the global economic uncertainties continue. The global market players are having fears about the US and China trade dispute and a rise in the concerns can lead to serious consequences. On Friday (i.e. May 31, 2019), Dow Jones Industrial Average got ended in red as the index got closed at 24,815.04 which implies a fall of 354.84 points or 1.41% on an intraday basis. Also, on the same day, S&P 500 Index got closed at 2,752.06 which reflects a fall of 36.8 points or 1.32% on an intraday basis.
Oil Prices Might Be Affected by Increasing Trade Worries
The oil prices are influenced by the macro-economic factors and by the news related to the trade battle. A rise in the economic certainties can negatively impact the momentum of stock markets and the oil prices are also influenced by stock markets’ movements. If the worries about global slowdown increases, it might put a question on the demand of oil which can also affect the oil prices.
Australian Markets Got Closed in Red: S&P/ASX200 Falls by 1.2%
The Australian markets are also sensitive to the momentum of global stock markets and a rise in the economic disturbances can negatively impact the equity markets in Australia. In order to bring stability in Australian markets and in global markets, settlement of the trade battle is very important. Today (i.e. June 3, 2019), S&P/ASX200 got closed at 6,320.5 which implies a fall of 76.4 points or 1.2% on an intraday basis. Eclipx Group Limited (ASX: ECX) and Regis Resources Limited (ASX: RRL) got ended in green as their stock prices have witnessed a rise of 19.643% and 7.191%, respectively.
On the other hand, Seven Group Holdings Limited (ASX: SWM) and Bravura Solutions Limited (ASX: BVS) got ended in red as their stock prices have witnessed a fall of 7.409% and 7.257%, respectively. We will have a look at some of the important news. Bounty Mining Limited (ASX: B2Y) had come forward and published the Chairman’s address to the shareholders. To read the entire news related to this, please click here. Also, AstiVita Limited (ASX: AIR) had undergone the management restructuring. To read the entire news about this, please click here.
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