Global Factors influencing ASX stocks on 04 May 2023

On 04 May 2023, at AEST 11:15 AM, the benchmark index S&P/ASX 200 is trading lower today, declining 45.30 points or 0.63%, and is currently trading at 7,152.10 levels. Out of 11 sectors, 6 sectors are trading lower along with the S&P/ASX 200. The Financial and Consumer Discretionary were the top 2 declining sectors, declining 3.22% and 0.47% in their index values.

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 lower in their previous session. NASDAQ Composite, NASDAQ-100, Dow jones and S&P 500 ended lower 0.46%, 0.64%, 0.80% and 0.70% respectively.
2. U.S. stocks ended lower in the earlier session, reversing gains after remarks from Federal Reserve Chair Jerome Powell left investors wondering what the U.S. central bank's next move would be with interest rate hikes.
3. The European Central Bank will raise interest rates for the seventh meeting in a row on Thursday as its long fight against stubborn inflation continues, with only the size of the move still open to debate.
4. Gold prices extended recent gains today, briefly touching a record high after the Federal Reserve hiked interest rates but flagged a more stringent approach to raising rates further amid worsening economic conditions.
5. Oil prices declined more than 1% today, extending steep losses in recent days, after the U.S. Federal Reserve raised interest rates and investors worried about a weakening global economy that could dent energy demand.
6. The U.S. central bank increased its benchmark overnight interest rate by a quarter of a percentage point to the 5.00%-5.25% range, as anticipated by financial markets.
7. The Hang Seng is down 1.18%, and FTSE 100 is up 0.20%.