Global Factors influencing ASX stocks on 05 January 2023

On 05 January 2023, at AEDT 12:20 PM, the benchmark index S&P/ASX 200 is trading higher today, gaining 12.40 points or 0.18%, and is currently trading at 7,071.60 levels. Out of 11 sectors, 8 sectors are trading higher along with the S&P/ASX 200. The Telecommunications services and Financials sectors are the top 2 gaining sectors, gaining 0.70% and 0.68% in their index values.

Also read-: Mid-Market: S&P/ASX 200 Trading Higher By 0.06%; Led By Communication Services And A-REIT Sectors

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

1. Key U.S. indices ended higher in their previous session. NASDAQ Composite, NASDAQ-100, Dow industrial, and S&P 500 gained 0.69%, 0.48%, 0.40%, and 0.75%, respectively.
2. Oil prices fell more than 5% amid investors' worry about fuel demand as the global economy slows and COVID-19 cases grow in China.
3. British grocery sales rose 9.4% to a record 12.8 billion pounds, though growth was driven by price inflation rather than increased purchasing.
4. U.S. Federal Reserve is looking to slow the pace of its aggressive interest rate increases.
5. OPEC oil output rose, despite an agreement by the OPEC+ countries to cut production targets to support the market. 
6. France's inflation is unexpectedly dropped below 7% from a record high. The slowing energy price rises are helping Europe overcome the worst of the inflation crisis.
7. Hang Seng is up by 3.22%, and FTSE 100 is up by 0.41%.

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