Global Factors influencing ASX stocks on 03 November 2023

On 03 November 2023, at AEDT 12:20 PM, the benchmark index S&P/ASX 200 is trading higher today, gaining 69.50 points or 1.01%, and is currently trading at 6,969.20 levels. Out of 11 sectors, 9 are trading higher along with the S&P/ASX 200. The A-REIT and Health Care sectors were the top 2 gaining sectors, up by 1.94% and 1.47% in their index values.

Also read: Mid-Market: S&P/ASX 200 Trading Higher By 1.12%; SQ2 Gained Over 23%

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 higher in their previous session. NASDAQ Composite, NASDAQ-100, Dow jones, and S&P 500 ended higher by 1.78%, 1.74%, 1.70%, and 1.89% respectively.

2. Asian shares and bonds continued a global rally on Thursday following a cautious statement from the Federal Reserve Chair, reinforcing market expectations of U.S. interest rates remaining steady or decreasing. Investors are now focusing on Apple's earnings report, a significant indicator for consumer demand and the technology sector. The Cupertino-based company is anticipated to announce a 1% decline in quarterly revenue. MSCI's broadest index of Asia-Pacific shares, excluding Japan, surged 1.7% to reach its highest level in one week. Tokyo's Nikkei rose by 1.4%, surpassing the 32,000 mark for the first time in two weeks.

3. On Thursday, Wall Street's major stock indexes surged by almost 2%, fueled by optimism that the U.S. Federal Reserve's interest rate hikes had concluded. Positive quarterly financial reports further boosted the bullish sentiment. As anticipated, the Fed kept interest rates unchanged on Wednesday. Although Chair Jerome Powell didn't rule out future tightening, he also acknowledged the recent rise in bond yields' impact on the economy.

4. On Friday, oil prices remained relatively stable, marking their second consecutive week of declines. This stability occurred as the U.S. central bank hinted at potential future rate hikes and concerns about supply disruption due to the Middle East conflict alleviated. Despite gaining over US$2 per barrel on Thursday, both Brent and WTI benchmarks were poised to decrease by approximately 4% and 3.5% respectively for the week.

5. The Hang Seng and FTSE 100 is up by 0.75% and 1.42%.

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