Global Factors influencing ASX stocks on 03 October 2023

On 03 October 2023, at AEDT 12:25 PM, the benchmark index S&P/ASX 200 is trading lower today, declining 95.50 points or 1.36%, and is currently trading at 6,937.70 levels. Out of 11 sectors, 10 are trading lower along with the S&P/ASX 200. The Energy and Materials sectors were the top 2 declining sectors, down by 3.94% and 2.79% in their index values.

Also read: Mid-Market: S&P/ASX 200 Sharply Lower By 1.18%; Global Bond Yields Surge

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, S&P 500, NASDAQ-100 ended higher by 0.67%, 0.01%, 0.83%, while Dow jones ended lower by 0.22% respectively.

2. Concerns about inflation resurfacing triggered a wave of risk aversion, impacting global markets at the start of the fourth quarter. Crude oil prices, represented by New York's West Texas Intermediate (WTI) and London's Brent, dropped approximately 2% each, continuing losses from the previous Friday. These benchmarks, which had surged almost 30% in the third quarter, posed potential economic challenges for non-oil producing nations.

3. The Dow Jones closed lower on Monday due to declines in energy and utilities sectors, coinciding with rising Treasury yields. This trend followed a last-minute funding measure in the U.S., preventing a government shutdown and providing a 45-day extension, impacting the market sentiment and contributing to the Dow's downward movement.

4. The euro experienced a significant sell-off in September, which persisted on Monday due to new indications of economic challenges in Europe. Experts caution that the euro might reach parity with the dollar in the upcoming months, as U.S. interest rates stay elevated.

5. The Hang Seng is up by 2.51% and FTSE 100 is down by 1.28%.

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