Global Factors influencing ASX stocks on 05 August 2023

On 05 August 2023, at AEST 11:25 AM, the benchmark index S&P/ASX 200 is trading down today, dropping 19.70 points or 0.27%, and is currently trading at 7,305.70 levels. Out of 11 sectors, 6 sectors are trading lower along with the S&P/ASX 200. The Health Care and Financial sectors were the top 2 declining sectors, down by 0.68% and 0.38% in their index values.

Also read: Mid-Market: S&P/ASX 200 Trading Flat; Block Inc Is Declining By More Than 10%       

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

1. Key U.S. indices ended lower in their previous session. NASDAQ Composite, NASDAQ-100, S&P 500, and Dow jones ended lower by 0.36%, 0.51%, 0.53%, and 0.43% respectively.

2. On Monday, Asian share markets commenced cautiously following a mixed U.S. jobs report, which prompted a surge in previously struggling bonds. However, there are additional challenges on the horizon, as investors await the release of U.S. and Chinese inflation figures later in the week.

3. On Monday, oil prices continued their upward trajectory, reaching the highest levels since mid-April. This surge was fuelled by the commitment of major producers Saudi Arabia and Russia to limit supplies for an additional month. Their efforts aim to further tighten global markets and provide support to oil prices.

4. Jamie McGeever, a financial markets columnist, provides insights into the upcoming events in Asian markets. This week in Asia, investors will closely watch a collection of significant Chinese economic data, along with second-quarter growth figures from Indonesia and the Philippines. Additionally, the Indian interest rate decision will be a crucial event on the radar. Market participants remain highly sensitive to the impact of rising global bond yields on the region's economies.

5. The Hang Seng and FTSE 100 is up by 0.61% and 0.47%.

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