ASX in Red Zone; Top Global Factors Influencing the Market       

 At AEST 10:30 AM, benchmark index ASX 200 stands at 6,517, down 0.58% from the previous close. Over the last five days, the index lost 0.88% and 11.12% over the last 52 weeks. At this time, most sectors are lower. The materials sector is the top gainer with a 0.83% surge in the index value, while Information Technology and A-REIT sectors are the top two losers with a drop of 2.36 % and 1.91% in their index values.

Below are a few global factors influencing the market today.

1. The major US indices noted a significant drop in their index values. NASDAQ Composite, NASDAQ-100, Dow Industrial, S&P 500 and Russell 2000 by 2.84%, 2.86%, 1.54% and 2.11% respectively. The weak Wall Street performance was driven by a drop in the Apple share price after Bank of America downgraded the Company from Buy to Neutral because of the slowdown in consumer spending.

2. The FTSE 100 is down -1.77% today.

3. The downgrade impacted the market sentiment of semiconductor stocks. Players like Taiwan Semiconductor (NYSE: TSM), Qualcomm (NASDAQ: QCOM), and Analog Devices Inc (NASDAQ: ADI) witnessed a drop in the share price.

4. The rising treasury yield created further pressure on the technology sector as well as on the broader market.

5. Wall Street ends lower on worries related to steps taken by the US Fed to fight against inflation.

6. The aggressive tightening of the monetary policy, the energy crisis in Europe, and the zero-COVID policy in China are dragging the oil sector globally.

7. Yesterday, the US imposed sanctions on businesses involved in Iran’s petrochemical and petroleum trade together with 5 companies from China, forcing Tehran as it seeks to revive the 2015 Iran nuclear deal.

8. United States 10-Year Bond Yield inched 1.03% in the previous trading session. Bond yield moved up on expectation of further central bank tightening.

9. In Europe, rising expectations that the European Central Bank will increase rates by an additional 75 bps in October helped to send yields on 10-year Bonds up to reach their highest levels since the Eurozone debt crisis in 2011.

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