Global Factors influencing ASX stocks on 04 October 2023

On 04 October 2023, at AEDT 12:45 PM, the benchmark index S&P/ASX 200 is trading lower today, declining 47.40 points or 0.68%, and is currently trading at 6,896.00 levels. Out of 11 sectors, 10 are trading lower along with the S&P/ASX 200. The Information Technology and Telecommunications Services sectors were the top 2 declining sectors, down by 1.26% and 1.14% in their index values.

Also read: Mid-Market: S&P/ASX 200 Trading Lower By 0.59%; Tracking US Markets Losses

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, S&P 500, NASDAQ-100, and Dow jones ended lower by 1.87%, 1.37%, 1.83%, 1.29% respectively.

2. US crude oil inventories may have dropped by 4.0 million barrels last week. Gasoline stocks likely increased by 3.9 million barrels due to high refining profits. Distillates, used for diesel and heating fuel, saw builds amid supply shortages, according to the American Petroleum Institute's weekly report.

3. South Korea's factory activity contracted in September, but at the slowest rate in 15 months, indicating a potential economic improvement. According to a private survey by S&P Global, the Purchasing Managers Index (PMI) for South Korean manufacturers rose to 49.9 in September, up from 48.9 in August, as the decline in output and orders eased.

4. On Tuesday, the S&P 500 closed at its lowest point since June 1, reflecting concerns about the Federal Reserve potentially maintaining high interest rates. The Dow, for the first time since June, dipped below its year-to-date level and ended at its lowest since May 31. Similarly, the Nasdaq also closed at its lowest point since May 31. Economic data, including an unexpected rise in U.S. job openings in August, raised concerns about a tight labor market ahead of the crucial monthly jobs report on Friday. Investors are closely monitoring benchmark Treasury yields, which reached their highest level in 16 years on Tuesday.

5. The Hang Seng and FTSE 100 are down by 2.69% and 0.54%.

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