Global Factors influencing ASX stocks on 02 August 2023

On 02 August 2023, at AEST 11:35 AM, the benchmark index S&P/ASX 200 is trading lower today, dropping 47.80 points or 0.64%, and is currently trading at 7,402.90 levels. All 11 sectors are trading lower along with the S&P/ASX 200. The A-REIT and Utilities sectors were the top 2 declining sectors, down by 1.68% and 1.60% in their index values.

Also read: Mid-Market: S&P/ASX 200 Is Declining By 0.58%; All 11 Sectors Are In Red    

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

1. Key U.S. indices ended mixed in their previous session. NASDAQ Composite, NASDAQ-100, S&P 500 ended lower by 0.43%, 0.25%, 0.27%, and Dow jones ended higher by 0.20% respectively.

2. According to a preliminary report from the American Petroleum Institute (API) on Tuesday, U.S. crude oil stocks are expected to have declined by over 15 million barrels last week. The report also indicated deficits in gasoline and distillates inventories due to significant production cuts by Saudi Arabia. However, it's important to note that this is not the official inventory data, and the final figures will be released later.

3. US Treasury yields in Tokyo on Wednesday experienced a decline after the country's top credit rating was downgraded by ratings agency Fitch. The 10-year Treasury note dropped about 3.2 basis points (bps) to 4.015%, retracing part of its 9 bps increase from Tuesday.

4. On Tuesday, Fitch, the ratings agency, lowered the United States' long-term foreign currency ratings from AAA to AA+, citing anticipated fiscal deterioration in the next three years and an increasing burden of general government debt.

5. The Hang Seng and FTSE 100 is down by 0.34% and 0.43%.

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