It can be said that the global investors are getting worried about the trade battle between the US and China as these worries can act as a primary reason for global economic slowdown. The disturbances in the global economic environment can severely impact the broader momentum of stock markets and can prompt the investors to sell their equity holdings which could trigger a downward momentum in the broader equities. The trade war between the US and China can cause problems in the global business environment which might impact the performance of the global economy.
The settlement of trade battle is very much needed in order to stabilize the momentum of global equities. This permanent settlement can also help in the revival of the investors’ confidence and they might decide to make deployments towards equities. Yesterday (i.e. May 29, 2019), Dow Jones Industrial Average ended the session in red as the index got closed at 25,126.41 which implies a fall of 221.36 points or 0.87% on an intraday basis. Also, on the same day, S&P 500 Index witnessed a fall and ended at 2,783.02 which reflects a decline of 19.37 points or 0.69% on an intraday basis.
Factors That Are Likely To Affect Oil Prices
The oil prices are sensitive to the health of the global economy and to the movement of stock markets. However, these prices are also influenced by global tensions, uncertainties related to economic environment, geopolitical worries and the macro-economic variables. In the present scenario, it can be said that the global growth is in danger primarily because of the trade battle between the US and China and, in the event of economic slowdown, the oil demand might be affected.
Australian Markets Ended in Red: S&P/ASX200 Falls 0.7% on May 30, 2019
The Australian markets might also be negatively impacted if the trade battle gets worse and if the economic uncertainties rise. These factors generally impacts the broader Australian economy which, in turn, affects the stock markets in Australia. Today, S&P/ASX200 was wrapped up at 6,392.1 which implies the fall of 47.9 points or 0.7% on intraday basis.
We will now have a look at the performance of stocks. Syrah Resources (ASX: SYR) and Blackmores Limited (ASX: BKL) got ended in green as their stock prices have witnessed a rise of 13.453% and 6.143%, respectively on an intraday basis.
On the other hand, Costa Group Holdings Limited (ASX: CGC) and Elders Limited (ASX: ELD) got ended in red as the prices of these stocks have witnessed a fall of 27.606% and 5.511%, respectively on an intraday basis. Coming to some of the crucial news, Costa Group Holdings Limited had come forward and they have downgraded the earnings guidance. To read the entire news related to this, please click here. Bryah Resources Limited (ASX: BYH) had concluded Stage 1 of Drilling Programme at Bryah Basin. In order to read the full news related to this, please click here.
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