Global Factors influencing ASX stocks on 01 September 2023

On 01 September 2023, at AEST 10:45 AM, the benchmark index S&P/ASX 200 is trading lower today, declining 30.10 points or 0.41%, and is currently trading at 7,275.20 levels. Out of 11 sectors, 7 sectors are trading lower along with the S&P/ASX 200. The Materials and A-REIT sectors were the top 2 declining sectors, down by 0.96% and 0.85% in their index values.

Also read: Mid-Market: S&P/ASX 200 Trading Lower By 0.41%; Dragged Down By Materials Sector         

On that note, let us look at a few global reasons impacting the stock market today:

1. Some of the key U.S. indices ended mixed in their previous session. NASDAQ Composite, NASDAQ-100 ended higher by 0.11%, 0.25%, while S&P 500 and Dow jones ended lower by 0.16% and 0.48% respectively.

2. Gold prices-maintained levels above the crucial mid US$1,900 mark on Thursday, with a slight dip following higher inflation figures, which raised concerns about potential Federal Reserve interest rate hikes. This occurred despite forecasts indicating a potentially significant drop in U.S. employment figures for August.

3. In August, Japan's manufacturing sector contracted for the third consecutive month, according to a survey, due to manufacturers grappling with rising costs from inflation in raw materials and increased wages. The yen's value has faced downward pressure in recent months, primarily driven by the Bank of Japan's highly accommodative monetary policy. This, in turn, has contributed to the escalation in the prices of imported goods.

4. On Thursday, the S&P 500 closed with losses while the Nasdaq saw gains, driven by U.S. inflation data aligning with expectations. This reinforced the belief that the Federal Reserve might halt its monetary tightening measures. Meanwhile, Salesforce advanced after presenting an optimistic forecast. The Nasdaq reached its highest level in more than four weeks following a report from the Commerce Department, which revealed that the Personal Consumption Expenditures (PCE) price index, regarded as the central bank's favoured measure of inflation, rose by 3.3% on an annual basis in July, in line with anticipated figures.

5. The Hang Seng and FTSE 100 is down by 0.55% and 0.46%.

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